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PAYE Underpayments 2004/05

PAYE Underpayments 2004/05

The Revenue have told us the underpayment should be ignored as the computer has added the CIS tax to the P35 totals (where it has already been entered) and doubled the amount due.
This has happened in other cases where the P35 was submitted online
Stuart Jones


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23rd Jan 2006 21:33

Did you also know that if you owe PAYE tax after 19th April interest is charged. Yet if a refund is due no interest is paid. P35's totally correct sent in before end of April 05 still waiting for refunds. Have been told "sorry only one staff working on P35 refunds will have to wait untill they come to top of pile".
I do not blame the staff. This Government have asked untrained staff to do work that requires a lot of experience and understanding of the system.

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23rd Jan 2006 20:08

Don';t they test their software?

We are based in Oxfordshire so no, it is obviously not just the Kent area! I've received threats of legal action today plus a further interest charge. If I phone I'm told to ignore it but I wonder what would happen if I did? I'm going to write a letter tomorrow (with full details and asking for written confirmation that everything is ok) together with an invoice for my time and see what happens. My payment terms will be 5 days so I will issue an interest invoice next week!
Seriously, is the software not tested before being rolled out? Why are these "bugs" such a surprise?

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23rd Jan 2006 15:08

CIS Tax IR computer problems and New area codes
Apparantly approx. 8000 cases of this duplication problem occurred. Whether this was only in the Kent area or nationwide I didn't dare ask!
I contacted East Kent area re some of our clients who were being asked for tax already paid.
The Area PAYE code changed during this year and the computers could not tie up the Contractors returns and normal P35s (which were filed on line). The people given the job of sorting it out (Newcastle) tied up the returns but the computers could not differentiate between normal tax and subcontractor tax so added the subcon tax on again!
I was told that the clients could ignore the demands but in one case they want over £50,000 and are still threatening distraint action!
What would happen if we or our clients made such c.. ups. Would the IR be reasonable?

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20th Jan 2006 13:29

Same problem
We've also encountered the same problem - in our case it was refunds not being issued.

When confirming the P35 figures with the Revenue, their system had added CIS deducted to PAYE from employees, and then added the CIS again from the relevant box.

Definitely one to watch out for...

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20th Jan 2006 14:37

Exactly the same!
Precisely the same scenario. What annoys me is that although I was confident that I HAD paid over the correct amounts, I still have to "prove" this to the Revenue by double checking all the figures and then phoning them and explaining. Needed all the payment dates in front of me including Class 1A. The Officer very sympathetic but saying this is what she had assumed but it was up to me to sort out! I did suggest that they double check the CIS side first before sending out the penalty notice but they "can't do that".

Oh what fun!

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