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HMRC ignoring what is on the Tax Return.

Has anyone else had this where Tax was to be collected via Tax Code

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For last tax year I had three cleints who are employed and have addtional rental income. The returns were filed early marked with the tax due to be collected via their tax code in the current year.

HMRC have ignored all 3 and issued tax demands for the amounts outstanding.

I had this twice the year before also which I managed to get sorted out after about 3 calls to SA Agent line.

Edit: Last tax refers to 2017/18 tax year.

 

What is the point of having the concesion avialable if HMRC just ignore it on the returns.

Does anyone else have this issue? I am beginning to wonder if there is an issue with my filing software.

Replies (12)

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RLI
By lionofludesch
23rd Apr 2019 10:17

By last tax year, you mean 2017/18 or 2018/19 ?

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Replying to lionofludesch:
By Glenn Martin
23rd Apr 2019 10:38

Sorry 2017/18

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Replying to Glennzy:
RLI
By lionofludesch
23rd Apr 2019 13:53

Well, I'd be pointing out that you ticked all the right boxes (assuming you did tick all the right boxes) and they need to get on with their bit of the job before the tax year gets too old.

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Replying to lionofludesch:
By Glenn Martin
23rd Apr 2019 14:59

Yes everything ticked as it should be.

Just wondered if it was a bulk issue as there seems to have been a lot of problems around the end of year tax filing in Dec/Jan last year.

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Replying to Glennzy:
By Tim Vane
24th Apr 2019 00:44

Glennzy wrote:

Yes everything ticked as it should be.

Just wondered if it was a bulk issue as there seems to have been a lot of problems around the end of year tax filing in Dec/Jan last year.

If you submitted in Jan then you missed the deadline for collecting through PAYE.

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By zarar
23rd Apr 2019 14:42

When this happened to me I called them and they sorted it out

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By bernard michael
23rd Apr 2019 15:00

HMRC take a view as to whether they can recover the tax during the year. This is dependent on the sums involved both PAYE & net rental. If they they think they can't recover it they will ignore any requests for tax code repayment

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Replying to bernard michael:
By Glenn Martin
23rd Apr 2019 15:38

There seems to be no system to it.

I have clients who wish to pay tax on their rental income via the SA system yet have there codes removed to pay it via their payroll.

When you get a query like this to sort it blows your £200 tax return fee out of the water.

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Replying to Glennzy:
Bramble
By Chris.Mann
23rd Apr 2019 16:17

It seems to depend on who picks the case up.

Strange, but from my experience, that's how it works.

If you speak to HMRC, even the dedicated agent line, once again, the response will depend on who picks up the call.

I think it all comes down to investment in training, which seems in short supply.

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By janewanless
23rd Apr 2019 16:32

I agree with other responses re it depending on who answers the phone.
I've had cases where the client has had 2 (or more) income sources, and HMRC have advised that they can't code a £50 underpayment from a £100 annuity - ignoring the £60K pension. Asking them to treat the larger pension as the main source usually works - but it can still depend on who answered the phone.
If his happen, politely end the call and phone back.

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By JCresswellTax
24th Apr 2019 09:56

All good advice above assuming the submission deadline of 30th December was met.

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Replying to JCresswellTax:
By Glenn Martin
24th Apr 2019 11:56

They were filed well before the deadline.

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