I am finding more and more that HMRC are coding out items shown on self assessment return on the next PAYE (for those clients who have PAYE).
Often for company directors I have rung HMRC and asked them to remove their coding as it "cuts across" our salary set up. However, for those employed clients who have a side business or property we do not often get notifications of coding.
In two recent cases we have been claiming marraige allowance transfer for one employee with a side business. Last year HMRC coded the allowance into his PAYE.
In the other an employee with property is close to the (but not quite at) the 40% tax band. She makes private pension contributions and HMRC coded these and reduced her PAYE. Although this coding would appear to be incorrect in the circumstances.
In the first case, showing the MTA reduces his tax liabiltity on the SA but he has already received the allowance. Do we omit?
In the second case I am assuming the tax software (Taxfiler) will show the corrected tax and HMRC will adjust the code?
My concern is that I advise a client of their liability and HMRC change the figures which then affects my credibility with clients as well as not being certain about the tax due.
Anyone with the same issues?