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PA302 (Simple Assessment) v SA100. Prefer SA100

2018/19 PA302 wrong three times. I want to submit 2018/19 SA100. Will SA100 kill off PA302?

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Without any input from me, HMRC issued three 2018/19 PA302 (Simple Assessments) for a client between April 2019 and September 2019.

HMRC got the bank interest wrong all three times. But tax was correct at £200 each time.

I have prepared the 2018/19 SA100 with the correct (and much more bank interest). But tax payable will still be £200 due to the generous £5,000 starting rate band.

The PA302 and SA100 will end up with demands for £200 payable 31 January 2020 using different Charge reference/UTR numbers.

If client pays the £200 through the SA system, will that kill off the PA302 £200 charge, or will HMRC pursue the £200 down both avenues. (I can just see what will happen here).

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By Matrix
20th Jan 2020 06:15

Why is the client completing a tax return? Just call up and get the tax code amended so they don’t collect it twice.

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Replying to Matrix:
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By Not Anonymous
20th Jan 2020 09:47

Matrix wrote:

Why is the client completing a tax return? Just call up and get the tax code amended so they don’t collect it twice.

The whole point of the PA302 is that the tax (for the tax year the PA302 relates to) isn't being collected via the the tax code.

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By Wanderer
20th Jan 2020 07:36

If the tax is the same I'd just accept the PA302.

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By Not Anonymous
20th Jan 2020 09:38

penelope pitstop wrote:

Without any input from me, HMRC issued three 2018/19 PA302 (Simple Assessments) for a client between April 2019 and September 2019.

HMRC got the bank interest wrong all three times. But tax was correct at £200 each time.

I have prepared the 2018/19 SA100 with the correct (and much more bank interest). But tax payable will still be £200 due to the generous £5,000 starting rate band.

The PA302 and SA100 will end up with demands for £200 payable 31 January 2020 using different Charge reference/UTR numbers.

If client pays the £200 through the SA system, will that kill off the PA302 £200 charge, or will HMRC pursue the £200 down both avenues. (I can just see what will happen here).

Will you be charging the client for this return?

What is the benefit of the return?

And to answer your original question yes it should.

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Replying to Not Anonymous:
By penelope pitstop
20th Jan 2020 11:17

Client is taking pension drawdown as an when he sees fit. So the Tax Code will apply in the year of drawdown. But drawdown has not happened for at least two whole tax years now, and so the Tax Code will not be applied until the next drawdown.
Tax Liability is because State Pension is greater than his personal tax allowance.
Client and wife sitting on HUGE pile of cash, so no need for pension drawdown unless it takes their fancy.
Client is advised by high power firm of financial/pension advisers.
I just mop up the mess afterwards.
Client likes to pay my bills!

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By penelope pitstop
20th Jan 2020 11:17

Ditto

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