This must be a record, my client who has been issued with a notice to file the 2022 return, as usual, has just received a P800 showing he is owed £2,800 in overpaid tax. The form shows annuity income and the state pension, No sign of the annuity income in the Fetch part of TaxCalc. But he is a self employed trader, with substantial interest income. Do you bother to get in touch with HMRC, or let things take their course, having warned the client what is happening? I don't recall a P800 arriving before the end of June
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I have had this issue with a self-employed client for each of the last four years, ever since he started receiving a pension under PAYE.
Each time, I have phoned HMRC and arranged for the P800 to be cancelled and told them to await the SATR, which they have done.
Also, HMRC could not properly explain why it happened and could not promise that it would not happen again next year!
But to answer your main question, I would definitely contact HMRC. I think things will become very confused if you do not. The SA and PAYE systems don't seem to 'talk' to each other.
The SA and PAYE systems don't seem to 'talk' to each other.
Same as SA and CGT for Residential Property then!
Don't ignore. Your client will be in breach of TMA for failing to notify the S/E income if you do.
When I said I ignore, I didn't mean not to file the tax return, just to wait and see what happens. I will give them a call
", just to wait and see what happens. "
Nothing happens short term ever - i have never ever know hmrc write to say recent p800/simple assessment issued in error now cancelled without them being chased - if you dont chase em hmrc will presume client is entitled to rebate that is wrong.
It's crazy have 2 clients who have been so informed SA800 that they have overpaid tax.
(1) has not paid any for 2 years and (2) they have ignored his self employed income that he has had for years. It's very poor but it's a start hopefully the vast majority will be right
The agent I spoke to points out that there is no link in the PAYE record to say the client is in SA. It should be there, but it isn't. No human intervention is possible, it is supposed to be set up when a client first goes into SA. He mentioned various work-arounds that he thinks will fix the position. There were no PAYE sources until an annuity began in 20/21, so no P800s were issued. One did get issued for 20/21. My copy went to an 8 year old address. My client never mentioned his copy, perhaps it also went to an old address, after all, he hasn't been employed for many years.
I'm not convinced to this day that HMRC ever integrated COP and SA. From the original days of COP it was a standalone system. When SA was introduced it became almost a virtualised system within SA, and I doubt they have ever changed that.
The two are likely still separate systems, one running in a virtual container on the other, but not talking to each other.
I had an email from a spammer last week telling me I had a refund due of frighteningly close to the actual amount.
I had an email from a spammer last week telling me I had a refund due of frighteningly close to the actual amount.
Me too last year, and a number of colleagues this year. We speculate that HMRC is leaking data somewhere.
I've had same,
Client received notice and a refund! Client asked me if they could spend it
Spoke to HMRC, SA and PAYE do not talk to each other!