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PAYE account showing Income tax credits

Unexplained credits on PAYE account

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I have found on a clients account some credits being applied. They are showing as 'Full Payment Submission (FPS) - Income Tax for month....'

I don't know what these are, called HMRC who told me for security they can't see the same as me and can't see the credits, just the current balance and they don't know where they have come from either.

I've checked my reports and FPS submissions for the months where credits have been applied and there is nothing showing on those.

Just wondered if anyone has any idea or has come across this too?

Thanks in advance for your comments



Replies (3)

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By kathyk0410
20th May 2022 18:44

Think this may be something to do with the "unallocated credits". Have you had tax refunds in previous months - we had something similar where there was no PAYE to offset the tax refund against, so it was shown as "unallocated tax credit" and then reallocated (drip fed) in subsequent months when there was a PAYE charge. So the month that it appeared may not be the month that you had the credit in or the amount of the tax refund.

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Replying to kathyk0410:
By zahzah
20th May 2022 20:19

An overpayment was made in January 22, otherwise exact amount has been paid every month, credits appeared in Sept to Nov 21 & Dec 211 has been allocated to April 22.

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By bernard michael
23rd May 2022 09:40

I've had it several times. HMRC write saying erroneously that the client has a credit balance/overpayment and wanting to know to what it should be allocated. Similarly I've had the reverse with claims of underpayment when the client is up to date.
In both cases they wanted me to provide a reconciliation and ignored any attempted reconciliation and letter replies. After about 3 letters all saying the same they give up , having probably sorted it themselves

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