HMRC include unpaid tax in code and also adjust SA

Self assessment calculation revised by HMRC to include underpaid tax for earlier years

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But the amount added in the SA Calculation for earlier years is not an old debt, but is the amount that the tax office collected during the 2017/18 tax year by reducing the tax code in October 2017. This adjustment was designed to collect the tax they estimated would otherwise be underpaid as a result of the change of code. So the PAYE deducted was increased, and now they want to add it to my client's bill.

I only raise this fairly minor query because if it happens once to my client, I assume the program will cause it to happen to thousands of taxpayers under SA

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By rjoconnor81
25th Jul 2018 16:44

I have had this with six client's so far, and expecting more. Call HMRC and they remove it.

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By Vaughan Blake1
25th Jul 2018 16:48

Yep, it is affecting thousands!

Not new though, as this has been happening for many years on a limited number of cases. At least HMRC are now aware of it, previously I used to get "well it was in the PAYE coding, computer says no" type answer!

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By Jo Nokes
25th Jul 2018 17:18

Yes, the agent I just called said it was' a bug'. Roll on MTD is what I say

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Oaklea
By Chris.Mann
26th Jul 2018 10:00

Well, at least the private sector is picking up the costs of flagging up the individual cases, to HMRC.

You really couldn't make this stuff up, in the real world, could you? Most of the operatives, to whom I've spoken, suggest the error is a "glitch", which they know about. While ever the cost element remains in their favour, why the hell would they want to take steps to correct the errors?

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