Watch out for PAYE automatic tax overpayments calculations for 2009/10 (dropping on a door mat near you).
HMRC is guessing interest income (and tax deducted) based on earlier years when interest rates were higher. The result is that it is crediting more tax deducted at source than it should and this inflates tax refunds.
Not funny if you are a pensioner.
Not funny in general.
Check this out: http://www.rossmartin.co.uk/index.php/sme-tax-news/35-sme-tax-news/474-paye-crisis-adviser-alert
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Replies (2)
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On the other side of the coin
I have anecdotal evidence that in the case of PAYE UNDERpayments, they are writing them off if under £300.
It remains to be seen whether those amounts will suddenly reappear to net off against a future year's overpayment. This could be significant if the alleged underpayment in the earlier year would have been disputed and ultimately decided in favour of the taxpayer but for the fact that the enquiry for that year is never pursued.
With kind regards
Clint Westwood
More on the £300
Dear Clint
This isn't anecdotal. You'll find out more about this on the Tax Faculty website here - http://www.ion.icaew.com/TaxFaculty/20763
Kind regards
Shirley