I recently joined millions of good citizens and submitted my tax return. On it was a 5 figure sum for gift aid, something normally done through my company, but this year was done partly in my own name. Very nice , I hear you say. Indeed so. Imagine my surprise to receive an amended coding for my PAYE for 2012/13 which gives me relief for gift aid of the same amount of 2011/12. I shall ignore it becuase it is piffle , But it got me thinking.
How many people would have failed to realise the significance of the error and ended up with a hefty amount of tax owing in 12 months time?
It would also get any wages department wondering about my personal finances , something I reckon most employees would not be too keen on
But 2 questions remain - how on earth can HMRC make such an assumption ? How can their computer let such a large code loose into the wilds?
Cetainly not helping the Treasury's cash flow!
About Norman Younger
Accountancy practice broker , Commercial mediator & negotiator, Boutique business broker & corporate financier. 25+ years professional experience, charity trustee and community worker with a broad (but not-always "PC") view of the country's financial, business, political and social problems. Tel: 0800 2800 321. Follow my personal Google+ page