Employee was given some dosh by employer to pay for extra personal costs in 2012-13. Employer then did P11D and employee had lower tax code to compensate in 2013-14.
Employee has just received new tax code for 2014-15 with exactly same deduction for P11D expenses as last year. She called HMRC, who told her tax code could not be adjusted until a P11D had been received for 2013-14. As she's no idea what the phrase P11D means she had to accept what they said.
As payroll agent I called HMRC to tell them this was ridiculous. The P11D item was a one off matter, for which she has now paid tax in full, and no P11D will be raised for anyone this year. "Nil" P11D's are not required and anyway the company has a dispensation in place. The person I spoke to agreed that the item should not be deducted from this year's tax code and said employee should call them. I said she already had called and could not see why she should have to call again. Given that the person she spoke to gave her the wrong information why would she be any luckier next time around? I stressed she was a low paid person and the deduction in her tax code was causing real hardship, particularly given it is not valid.
Good old HMRC said they would put a note on her record that I had called, but she must call again if a change is to be made to her tax code.
What bothers me most is that they've changed policy and will insist on all P11D people ringing them every tax year if the deduction is no longer valid and then will fight it all the way.
Perhaps I'm being unfair and when the employee rings HMRC back, they'll apologise profusely, take her out to lunch, and tell her they'll lower her total tax bill overall as a goodwill gesture.