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Self Assessment conundrum

Self Assessment conundrum

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Client had a code change during tax year 2011-12 and HMRC calculated a potential underpayment of £1,349.56 which resulted in a restriction in his 2012-13 code to collect this amount. Completion of the 2011-12 return indicated a liability of £4,453.15 which the client paid in full. Do we have to accept the notional underpayment in the SA return for 2012-13 which the online system has already included?

Jivebunny 

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By Euan MacLennan
10th May 2013 12:03

Was it your mistake?

Are you saying that you failed to enter £1,349.56 in Box 8 on page TC1, which is described as:

8  Underpaid tax for 2011–12 included in your tax code for 2012–13 – enter the amount from your PAYE Coding Notice

and hence, that you overstated the tax liability?

If so, file an amended 2011/12 income tax return now with the correct entry in Box 8 on page TC1 and also, the appropriate entries on page TR5 to claim the refund of £1,349.56 overpaid for 2011/12, which has already been collected by adjustment of the PAYE code during 2012/13.

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Replying to Chris Mann:
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By jivebunny
20th May 2013 13:39

Coding adjustment

Hi Euan,

Thanks for your input. Unfortunately at the time of completing the 2011/12 return I had not been provided with a copy of the notice of coding and it wasn't until I checked the online facility to view notices of coding much later that it emerged that a change had taken place as previously outlined.

Your solution has worked fine and I expect the repayment of £1349.56 will be issued soon.

Regards

Jivebunny

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