Share this content

HMRC Tax calculation is wrong

.

Didn't find your answer?

In a case where a taxpayer has PAYE income, and is subject to self-assessment, if a coded underpayment exceeds the tax paid at source via PAYE, the HMRC tax calculation is restricting the underpayment coded to the tax paid at source, resulting in their calculation showing less tax due.

EG. Underpayment coded £1,000. Tax paid via PAYE, £800. SA tax payable £1,500. HMRC will calculate SA tax payable to be £1,300. This has a knock on effect to POAs. I've spoken to HMRC who confirm that their calculation is doing this, and I've spoken to IRIS who confirm that their calculation is per HMRC specifications. I believe that IRIS are correct.

I have no idea who to talk to next. Perhaps @John Hemming has a clue who to talk to?

Replies (55)

Please login or register to join the discussion.

Replying to emanresu:
avatar
By richard thomas
29th Jul 2021 16:53

Your reaction to my post (I was certainly not pulling your leg) sent me to your previous posts. I suspected you may be suffering from what Geoffrey Pullum, Professor of Linguistics at Edinburgh University, calls “nerdview”. By that he meant that some people become so used to the particular jargon of their job or field of interest that they expect everyone to know what they mean by a piece of jargon.

That “reserved word” and “reserved term” are jargon in the computer programming world is clear from a cursory Google or Wikipedia search, as well as from the Wiki entry that Hugo Fair cited.

What is jargon about the phrase is the use of the attribute “reserved” to describe a “word” or “term”. In general speech and writing, including in discussions about tax, “reserved” cannot sensibly be used in connection with “word” or “term” to form a meaningful phrase.

I do not know if you are a programming person or have worked in that industry, though I did note your highly knowledgeable reply of 17 July 2021 to a post headed “Is there a function in Excel for this?” which suggests you might be.

Nothing in your post of 12:38 today is conclusive on this, but it does suggest that you are. This is because you chose the attribute “reserved” without consulting a dictionary, but thought you had to use one to confirm that “term” was the relevant noun.

The post does not explain why you typed the word “reserved” in the first place (I assume “aspiration” is a typo, possibly for “attribute” or “adjective”), unless you were familiar with the jargon use of it, a usage that does not appear in, for example, the SOED except by analogy.

If you didn’t come up with “reserved” because of your familiarity with it in the programming business, what do you think it means? And just to make it absolutely clear I do know what the word” term” means by itself. Your patronising and inappropriate response simply shows you have no idea of the difference between individual words on the one hand and phrases using combinations of them on the other (a distinction at the heart of statutory interpretation, not to mention the jokes about the Holy Roman Empire and the Lord Privy Seal). I asked you to explain, because I genuinely did not know, the phrase “reserved term” in the context of tax, whereas as you have only told me what the single word “term” means. This is the typical response of a person who likes picking up other people’s errors and infelicities of language, eg “The symbols are parentheses, not brackets!” (15/10/2020) but dislikes being questioned about what they themselves say.

I did at one stage think the explanation for your reaction and some of your usages such as capitalising words as if we were still in the 18th century (eg “[t]he Order of Taxation” – post of 23/2/21) is that English is not your first language, but you are capable of using some idioms appropriately. If you think I’m being patronising you are right.

You are wrong about the SA302 as SteveHa has already pointed out. I could post my own SA302 for 2018/19, but will simply set out the final few line entries without the figures:

Total income on which tax has been charged
Income Tax due
plus Underpaid tax for earlier years in your tax code for 2017-18
Income Tax due
minus Tax deducted
From all employments, UK pensions and state benefits
Total tax deducted
Total Income Tax due

And the computer generated self-assessment summary shows at box 1 on page TC1 the same figure as the last line of the SA302, a figure which includes the coded out underpayment. That underpayment also appears in box 7 on page TC1.

So could you please explain why you think that SteveHa’s line entries do not follow the format of an SA302, and how the “reserved term” (SA302) had been misused. And how can both HMRC (Tax due £1,162.50) and Iris (Tax due £1,562.50) be said to agree the “HMRC Tax Calculation”. Iris is simply wrong, but the interesting question is why.

Thanks (1)
Replying to emanresu:
avatar
By More unearned luck
29th Jul 2021 17:09

I don't think that Richard was pulling your leg - its a case of you bamboozling him with your own personal jargon. HMRC are not an académie française; they can't dictate how the rest of the planet uses the term 'tax calculation'. And they don't even 'reserve' the term for sa302s, for example HMRC use it for P800 and for other taxes as well.

Thanks (1)
Replying to emanresu:
avatar
By More unearned luck
29th Jul 2021 17:09

I don't think that Richard was pulling your leg - its a case of you bamboozling him with your own personal jargon. HMRC are not an académie française; they can't dictate how the rest of the planet uses the term 'tax calculation'. And they don't even 'reserve' the term for sa302s, for example HMRC use it for P800 and for other taxes as well.

Thanks (0)
Replying to More unearned luck:
avatar
By Tax Dragon
29th Jul 2021 17:17

Phew!

I have been at a loss know what to call those things I've been doing when I calculate tax liabilities.

Thanks (2)
Replying to emanresu:
avatar
By More unearned luck
29th Jul 2021 17:09

I don't think that Richard was pulling your leg - its a case of you bamboozling him with your own personal jargon. HMRC are not an académie française; they can't dictate how the rest of the planet uses the term 'tax calculation'. And they don't even 'reserve' the term for sa302s, for example HMRC use it for P800 and for other taxes as well.

Thanks (0)

Pages

Share this content