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PAYE coding

PAYE coding - HMRC think they know better than tax payer or agent

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This is a gripe not a question

Client started receiveig small pension in 2018-19. As client higher rate tax payer on partnership profits I phoned HMRC to get DO X coding from start. Coding notice issued for 2018-19.

For 2019-20 HMRC issue P6 to pension company but no P2 Coding notice issued. First we know is when April payment of pension made with no tax deducted.

Phone call to get DO X reinstated.

A     Why do HMRC override instruction from September.

B      Why do they not issue a Coding notice

C    If they look at the information recieved for 2017-18 they will see a higher rate tax payer.


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By PBH64
24th Apr 2019 14:26

SA system not setting correct flags on PAYE system and PAYE system processing accordingly

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By Vaughan Blake1
24th Apr 2019 16:29

I do sympathise. A few year's ago I had a client with three Aviva pensions. One for £50k, one for £20k and one for £5k.
Easy peasy to set the main code against the largest pension (duly reduced by the state pension) and DO codes against the other two. I think we had every permutation except the logical one. Three personal allowances, three DO codes, main allowance set against the smallest pension.
Finally got it right by the Christmas, only to find in January that the following year's codes had reverted to all D0 (or Doh!), so off we went again.
I spent some years working for the TOPS tax charity and was appalled by the sheer number of stupid tax codes issued to pensioners with more than one occupational pension.

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