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HMRC "Fixing" PAYE

For employees

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https://www.gov.uk/government/publications/issue-briefing-changes-to-our...

Surely they would be better advised to get RTI working properly before they start interfering with tax codes based on the detritus that they regularly record at the moment?

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11th Apr 2017 09:09

The gist of the webinar last week was:

- taxpayers will tell us of changes through their personal tax account (of course they will, sweet to think that every PAYE employee has set up their account and assiduously follows it to make sure everything is correct with their tax)
- we will adjust tax codes to collect the additional tax in the year so that the taxpayer is not paying for two lots of tax the following year (for which my cynical mind reads we'll accelerate tax collection)

The examples given are all well and good in theory, but unlikely to happen for the non employer reportable in year benefit change and likely to lead to employee confusion for something that is (like a new car benefit reported on P46 Car)

They seem to presume that all staff understand exactly how PAYE works, clearly not the case from the comments one hears from professional, non tax people re something like a bonus received ("what's the point when they take 40% off when you receive it" overlooking the fact that if they are not overall HR in a year the initial hit will unwind as the year progresses).

The implication of the webinar was that codes would be changing much more regularly as other information, like interest received from a bank, starts to hit the personal tax account.

Poll questions on the webinar: How confident are you to advise taxpayers to speak to HMRC helpline? Response Not At All = 56% :D though strangely that reduced to 29% by the end of the webinar in which nothing was said that gaveme (at least) any more confience that a call to the Helpline would elicit a correct and understandable response.

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11th Apr 2017 09:09

There's that word 'customers' again!

They've sent one of our PAYE clients correspondence demanding to know why a tax code reduction for an employee had not been made. it wasn't made because the change notification was never received.

I predict a riot.....

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to memyself-eye
11th Apr 2017 10:25

memyself-eye wrote:

I predict a riot.....

If it wasn't for chip fat, they'd be frozen.

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to lionofludesch
11th Apr 2017 10:36

lionofludesch wrote:

memyself-eye wrote:

I predict a riot.....

If it wasn't for chip fat, they'd be frozen.

You old Liondensian.
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11th Apr 2017 10:30

I got a code of K3438 for a young kid who earns £216 a week.

Subsequently revised to 50L.

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11th Apr 2017 10:50

One assumes the "tax change notice" will not actually enclose the actual tax code that has changed? But merely instructions to log on to the portal?

That is to say 99% of real humans will ignore the letter, or at least if they dont ignore it, attempt to log on, find they cant and give up, or spend hours doing it, find the code, and still not understand it.

I dont know how much is in an old pension scheme, as they have replaced the annual 3 page letter with the date on it, with a glossy brochure telling me to log on to their sparkly website. Which I dont have the codes for. Or if I do, I cant be bothered to find.

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12th Apr 2017 10:15

Increasingly HMRC lives in a world of its own, helped on by the bumbling idiocies of their political masters.

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12th Apr 2017 11:26

We are already getting tax codes trying to collect tax on dividends and interest that HMRC 'thinks' is going to be recieved in the forthcoming tax year. Why don't they wait until the income is actually received and wait for the tax when it becomes legally due?

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to BSSRoberts
12th Apr 2017 12:21

It's called cash flow planning. Got to reduce the deficit, you know. LOL

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By tedbuck
12th Apr 2017 12:23

Best one yet - client with a pension £27 k, a salary £10k and they then issue a BR code on a further £50k salary - result underpayment of enormous sums. Revenue's comment ' We don't look at RTI during the year but rely upon taxpayers to monitor the situation'.
As if taxpayers would understand it and as your previous respondent said they just ignore the coding notices anyway despite the times we tell them to forward them to us, which HMRC used to do but now don't.
HMRC couldn't care less and the tax system is now so complex that no ordinary person could reasonably be expected to fully understand it which will I am sure be good for the latest stealth tax - more fines for everything. Pity we can't fine HMRC when they get it wrong.

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12th Apr 2017 12:36

I've already had a client forward a notice of coding issued on 15/3/17 adjusting his 16/17 code to collect the tax on his state pension of £6358. Unfortunately this only started being paid on 15/3/17 so for the year amounts to a grand total of £244. Of course because of HMRC's unique postal system our client got it on 7/4/17, and even then we couldn't see it on the website.
I await to see how much tax he actually had deducted from his other income, and as I've told him, the quickest way to get it back will be by submitting a SA return, just as I was hoping to get him out of that club.

All I need now is for him to fall into the paper return band, where the Revenue no longer have the staff to process it, and my life will be complete!!!!

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12th Apr 2017 15:02

One of my clients' has received a coding notice for 17-18 with half her personal allowance allocated to her current job and half to the job she left in 2016. The narrative for the previous job says 'Income now ended'. Another programming error!

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