Collecting unpaid tax through Paye

Collecting unpaid tax through Paye

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We have a client with in excess of £100k salaried income plus benefits, each year we put the figures through his SA Return and request an adjustment to the tax code for the upcoming year, I have never given this any thought and it may seem foolish but why doesnt the current year look like the tax has been overpaid.

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By Batty Girl
05th Jan 2021 16:56

If you're also putting the 'underpaid tax for earlier years included in your tax code' on the return then I don't think it would (unless I've misunderstood the question). If you're getting an underpayment every year I'd be looking at the tax code to see what HMRC aren't including. Are all the benefits accounted for in the tax code?

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By Matrix
05th Jan 2021 17:00

I doubt the tax will be exactly right due to the loss of the personal allowance, so I would be surprised if the coding was completely spot on.

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By CW2012
05th Jan 2021 17:04

Thanks, the tax was out by £300 ish this year, looking at his tax coding notices the HMRC had issued 8 in the 2020 tax year, I think that the undercollected tax from previous years may have been omitted from his previous S A Return. I will recheck the figures.

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By Paul Crowley
05th Jan 2021 17:52

Given the pain these cause I always look to get taxpayer to pay or reclaim

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Replying to Paul Crowley:
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By CW2012
05th Jan 2021 18:03

Probably a better idea.

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