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
Replies (2)
Please login or register to join the discussion.
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.