Member Since: 1st May 2019
5th Jun 2021
Numerous questions/posts about this already and a recent blog as well with a bit more info about why it might be delayed.
4th Jun 2021
The POA are calculated by reference to the preceding years return so unless the 2020/21 return showed a liability of less than £2,000 the POA for 2020:21 will remain the same.
So tax payable for 2020/21 is,
31/01/2021 = £1,000
31/07/2021 = £1,000
31/01/2022 = £1,000
The only POA that could be £1,500 are for 2021/22, not 2020/21.
22nd May 2021
Thanks for this. The calculation of £11k overpaid tax does factor in his reduced personal allowance. HMRC do have all the info they need to work out his tax position but I understand where you are coming from. Thanks again for taking the time to reply.
Although that is only a provisional repayment, completion of a Self Assessment return will still be required. Don't forget to include the £11k tax already repaid by HMRC in the appropriate box :-)
22nd May 2021
Thank you so much. I wondered how HMRC would actually know directors were receiving dividends and therefore changing tax codes?!
Because the director (or their accountant/agent) would notify HMRC of the untaxed dividend income.
Not needing to complete a return doesn't mean the tax doesn't need to be paid. There is more to personal tax than Self Assessment!
18th May 2021
I included the losses to be carried back in box 23 in the individuals partnership section on their return.
As you say both partners have now received penalties in respect of unpaid 19/20 tax. I have appealed but no response from HMRC as yet.
Not sure what you have to appeal against. A loss carry back won't have any impact on the tax due for 2019/20.
Not convinced you have quite grasped the reality of how this works and that it makes no difference whatsoever to the clients tax liability for 2019/20.
18th May 2021
Michael Davies wrote:
Good luck with this.In my naivety I submitted the claim in the white space and as an attachment,when I submitted the return last August.I did actually manage to get through to HMRC last autumn,who told me that white space entries and attachments were ignored by the algorithm.The Operative said he would transfer the claim to Tech Section,who would ring me back.,within two working days-nothing doing .Complaints told me to enter the total refund due on the tax return.Did that.Current year overpayment processed,nothing on back years.Submitted two letters outlining the loss claim,one to Complaints ;still no response.We are now getting on for nine months since first submitting the claim.
Pretty sure amending the return doesn't produce an automated result
17th May 2021
A loss carry back won't normally alter the actual liability of the earlier tax year so the amounts due for 2019/20 wouldn't change.
But the client should receive a credit based on the relief due. This can leave them owing interest and late payment penalties if they didn't pay the tax actually due for 2019/20.
Did you calculate the relief due and include that in the relevant box on the 2020/21 return?
15th May 2021
If a notice to file (or return) has been issued then it should normally be completed.
You have the option to ask HMRC to withdraw the notice to file if HICBC was the only reason it was issued in the first place.
But I suspect that may take more time than simply filing the (completed) return itself.
It is the HICBC section that wouldn't need completing, the PAYE income would have to be declared as would any other taxable income.
I presume you realise it isn't the person with the "higher income" that is liable to the HICBC, is is adjusted net income which matters.
6th May 2021
If only it were quite that simple!
Some individuals with no normal tax liability will still have to pay tax on the deferred State Pension lump sum.
5th May 2021
I wonder what the op would do if they had,
• a client who is new to Self Assessment so had been able to use the HMRC microservice when it started last year and received an updated tax code including WFH expenses of £312.
• subsequently ceased in employment part way through 2020/21
• became self employed during 2020/21 with turnover in excess of £1,000
• has been sent a notice to file for 2020/21
Would they include WFH expenses of £312 on the return or apportion the £312 based on the period of time the employment existed in 2020/21??