Will HMRC every get sorted out while they carry on being run by buffoons?
I got two coding notices for ONE client today.
Both for 2010-11
Both dated 04/01/10
Both for the same employer
Two different tax codes: 600L and 155T
Replies (10)
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And us
We had the same thing. Do you think that they should time stamp the forms so that we know which is the current state of their muddled efforts?
Threats
Sounds like our client who had threatening letters. They were going to take him to court, seize his house, etc etc. and at the top it said - "amount due . £0.00".
OK, this is going to be tricky next month
I will write a detailed article explaining the issues when January is over, but for the meantime, here's the back story :
The new PAYE computer system launched in July (called NPS) is in play for the first time for the code run. The big difference is that the master file system is organised by employee name rather than by employer, allowing HMRC to marry up records of people who have more then one job / pension etc. Ultimately this will be much more efficient as it will allow accurate issue of tax allowances where someone has several part time jobs and wants part of their allowances transferred to a second job. However, this is the first year, and the system has collated data from P35's, some of which is a bit suspect. So HMRC are already warning that this year there will be extra code notices and there may be some bugs that are coming through due to duplicate records. Their advice is to wait for a bit and see whether any more notices come through - which means that the systems have reconciled the issue.
That makes me think that waiting until Feb is a GOOD idea - and not only for my sanity. In the first week of Feb we'll write up some detailed advice for you based on HMRC's advice ..... the good thing is that they have already assessed the impact of year 1 and have put resources in to deal with it - plus formulated a plan of action for agents and employers to follow.
More later - keep watching!
Perhaps something isn't working
HMRC's own PAYE manual implies that the new system can't issue two coding notices on the same day, so perhaps there is a problem that HMRC don't know about.
I found it at http://www.hmrc.gov.uk/manuals/pommanual/PAYE11120.htm
which deals with Coding: codes: How they are used and calculated: issuing and amending a tax code
Under the section "Process to issue a tax code" there is a para which goes:
“Any later tax code calculations made on the same day will look back to the last tax code calculation made on the same day and then work out any further adjustments to the basis of operation, potential underpayment and issue of form P2 or P6 / P9. .......The first P2 for the employment will not be issued.......”
Kind regards
Shirley
Warning to taxpayers to check tax codes
http://news.bbc.co.uk/1/hi/business/8478271.stm BBC 25 Jan 10
Incorrect tax codes may have been sent out by HM Revenue & Customs (HMRC) because of a new computer system.
The codes tell taxpayers how much their employers and pension firms will deduct in income tax in the coming financial year, 2010-11.
See especially "Computer Problems"
Chris R
LET ME TELL YOU ABOUT MY WIFE!
HMRC have given her two codes, one for an employer that she hasn't worked for for years and the other for her current employer, and yes you've guesed it, the smaller code number is the one sent to the current employer.
I've yet to phone them but as i'm just her husband and not agent i don't hold out much luck.
Similar Tax Code notices have been received by our payroll department for employees.
It's always a new system that's the fault isn't it, not incompetence by the people designing these new systems.
AAAAARGH
Van Fuel Duplication
Another one for the list
Our client has a few guys still with van fuel benefit (I know, I know, I have told him about the rules but he is happy to give the vans and fuel out), anyway they have all just received their new codes for 2010-2011 and guess what, they have a fuel charge of £500 and £550(new 10/11 rates)
Now I did not even bother when the rate went up to £550 as as I thought the guys could live with a 20p a week increase, but as HMRC are stating there is no computer error it is a cheeky wee increase to £1050.
I have however advised them to get in touch with HMRC just incase their computer is not working properly ;-)