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Mortgage companies- I thought I had seen it all

Client been asked why TYO different to tax calc

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A client has just forwarded a query from the mortgage company where the TYO's don't agree to the tax per the return - fair enough, until you see that the difference is a princely 65p.... Don't they have better things to do.

I presume it is a slight difference between the HMRC calc and the software calc - the only thing I can think to do is to send the submission recept to show that the IR mark matches the return he has provided to them.

 

 

 

 

Replies (10)

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By memyself-eye
01st Jul 2019 16:07

65p? it's probably the proceeds from money laundering and they're just being careful.....

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By Wanderer
01st Jul 2019 16:17

My experience is 99% of cases is that the software produced SA302s agree to the penny to the TYOs.
The only pattern for the 1% that I've seen is where there is reduced NI as a result of a combination of Classes 1, 2 & 4.

I wouldn't send the submission receipt, that doesn't fit in with the 'computer says no' mentality of the checklists used in the mortgage provider's offices.

I would tend to just fudge the SA302s to make them agree to the TYOs. Anything else will be just further grief to deal with.

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Replying to Wanderer:
By Duggimon
01st Jul 2019 16:22

If you save the tax year overview as a html file instead of printing or pdfing it, you can also fudge that to make it agree with your calculation.

That's probably considerably more dodgy, but it does beg the question why such reliance is placed by mortgage lenders on easily editable documents.

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By SteveHa
01st Jul 2019 16:18

I had a similar one this morning, though the difference was £167 which, after examining all the facts, turned out to be incorrect figures on HMRC's side (and no explanation of how).

HMRC corrected on the back of a phone call, the lender will be happy, and the client will get some money back, so I'm kinda pleased about it.

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By leicsred
01st Jul 2019 16:38

Looking in more detail at other clients - it seems there is a few pence difference in the calculation of Student loan repayments.

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By SXGuy
01st Jul 2019 16:38

As others have said. Get the sa302 to match or ask hmrc to amend tyo. Whichever is needed. But even if it was 1p out they still won't accept it.

65p is the same as being 6500p out in my opinion. Wrong is wrong and id probably query it as well.

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By leicsred
01st Jul 2019 16:58

On further investigation our tax software (Digita) seems to calculate the student loan repayment to the penny whereas HMRC have rounded it down to the nearest pound (the differences are exactly the pence on the SL repayments each year.)

Is that correct - I have never looked at this in such detail before?

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By Chris Maslin
01st Jul 2019 17:05

We had a similar issue a while back, again, trivial discrepancy. The lender wasn't happy. Was a real pain to resolve. Afraid I don't remember exactly how it was resolved...which I appreciate isn't much use, other than to let you know you're not alone!

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ALISK
By atleastisoundknowledgable...
01st Jul 2019 22:36

I’ve just had to try and explain to a mtg broker why a client’s tax liabilities are all paid despite the TYO showing £500 due. Apparently “HMRC have taken 17 months to correctly allocate a payment” isn’t on their list of acceptable answers. Even though I have it in writing from HMRC (not the only good thing about using HMRC’s webchat - you also get to ‘speak’ to someone quicker!)

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By frankfx
02nd Jul 2019 18:48

All this tail chasing to meet some data profiling and matching.
That's Artificial Intelligence for you … and more to come.

Invariably the helpful / go the extra mile accountant suffers the ''unbillable'' time costs.

We need a voice so that common-sense ( accountant's view of course) out trumps officialdom. But we are all hoarse here, so suffer in silence.

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