Jump to content
House Price Crash Forum
kittingerjump

Paye Tax Error... Merged

Recommended Posts

Is this some kind of ruse to get freshly printed money into peoples' pockets, I wonder?

Hmmm ...

£2 billion underpaid - £1.8 billion overpaid means that £200 million is owed to the taxman.

Share this post


Link to post
Share on other sites

£2 billion underpaid - £1.8 billion overpaid means that £200 million is owed to the taxman.

I just wonder whether they might just forget those who underpaid and concentrate first on handing out the free money? :ph34r:

Share this post


Link to post
Share on other sites

This is EPIC, over 6 million people will have to pay back up to £1500, this will be clawed back at £100 a month direct from wages according to Sky news. They will also have a new tax code which will reflect the tax payment they should have been making.

The 1.4 million who overpaid will have their tax code changed next tax year, so no rebates for those that overpaid.

How many family budgets can take a £100+ plus hit at the moment? That may put more than a few under.

Share this post


Link to post
Share on other sites

This is EPIC, over 6 million people will have to pay back up to £1500, this will be clawed back at £100 a month direct from wages according to Sky news. They will also have a new tax code which will reflect the tax payment they should have been making.

The 1.4 million who overpaid will have their tax code changed next tax year, so no rebates for those that overpaid.

How many family budgets can take a £100+ plus hit at the moment? That may put more than a few under.

debt...its a killer.

Share this post


Link to post
Share on other sites

I sometimes wonder who looks at what tax they pay, what tax code they have, they look at the bottom right had corner and go from there......who knows whether you are over charged or under charged...you tend to trust them, or can you? ;)

Share this post


Link to post
Share on other sites

This is EPIC, over 6 million people will have to pay back up to £1500, this will be clawed back at £100 a month direct from wages according to Sky news. They will also have a new tax code which will reflect the tax payment they should have been making.

The 1.4 million who overpaid will have their tax code changed next tax year, so no rebates for those that overpaid.

How many family budgets can take a £100+ plus hit at the moment? That may put more than a few under.

If it's £1,500 to be repaid between now and the end of this tax year, it's more than that.

Edited by Minos

Share this post


Link to post
Share on other sites

If it's £1,500 to be repaid between now and the end of this tax year, it's more than that.

I was just repeating what was said on the news, seems they wish to claw it back over the remainder of this tax year and next.

I sure as hell hope I don't have one of those letters thump on my mat on Tuesday. My family budget has a good bit of flexibility, but crikey, it's not double jointed!!! Caravan holiday in Blighty coming up next year if that's the case.

Share this post


Link to post
Share on other sites

I've just looked at my last payslip, and worked out that (unless there's something I'm not factoring in, e.g. that my pension contributions attract tax relief or something like that) I'm paying £34 a month less income tax than I should be.

If that's been going on for the last two years and my wages take a £68 a month hit each month in 10-11, it'll be an annoyance but not a serious problem for me. The primary result will be that I'll spend less on leisure, and so what the government gains in extra income tax, it'll lose most of in reduced VAT.

Share this post


Link to post
Share on other sites

I was just repeating what was said on the news, seems they wish to claw it back over the remainder of this tax year and next.

I sure as hell hope I don't have one of those letters thump on my mat on Tuesday. My family budget has a good bit of flexibility, but crikey, it's not double jointed!!! Caravan holiday in Blighty coming up next year if that's the case.

Bring it on...

Share this post


Link to post
Share on other sites

I've just looked at my last payslip, and worked out that (unless there's something I'm not factoring in, e.g. that my pension contributions attract tax relief or something like that) I'm paying £34 a month less income tax than I should be.

If that's been going on for the last two years and my wages take a £68 a month hit each month in 10-11, it'll be an annoyance but not a serious problem for me. The primary result will be that I'll spend less on leisure, and so what the government gains in extra income tax, it'll lose most of in reduced VAT.

Some employers make SMART pension contributions, the effect of which is to increase your pension contributions whilst reducing your taxable income. Just as well to check this with your payroll department.

I'm a bit uncertain as to how this error has come about, is it really as simple as applying an incorrect tax code, or is it an error in the calculation of the tax codes in the first place?

Share this post


Link to post
Share on other sites

This is EPIC, over 6 million people will have to pay back up to £1500, this will be clawed back at £100 a month direct from wages according to Sky news. They will also have a new tax code which will reflect the tax payment they should have been making.

The 1.4 million who overpaid will have their tax code changed next tax year, so no rebates for those that overpaid.

How many family budgets can take a £100+ plus hit at the moment? That may put more than a few under.

Not really EPIC at all. This post just shows how clueless some people are when it comes to tax, even when just trying to quote from the original post. 6 million people haven't underpaid their tax at all !!. 1.4 million people have underpaid tax in 09/10 & the rest overpaid & they will get a refund, but not through their tax code though !! lol. Don't know why she thinks people who have overpaid tax will not get a refund at all ??

The 1.4 million who have underpaid tax (not overpaid ), basically because they are receiving untaxed benefits/income which were not included in their tax code (which they get a copy of to check to make sure its correct), will have the underpayment collected through their tax code probably in 2011-12, unless its over £2k.

Share this post


Link to post
Share on other sites

Some employers make SMART pension contributions, the effect of which is to increase your pension contributions whilst reducing your taxable income. Just as well to check this with your payroll department.

I'm a bit uncertain as to how this error has come about, is it really as simple as applying an incorrect tax code, or is it an error in the calculation of the tax codes in the first place?

Get rid of all those backroom staff who do nothing productive. It will have no effect :lol:

Share this post


Link to post
Share on other sites

PAYE Tax Code Error - Challenge it!

http://www.accountingweb.co.uk/topic/tax/hmrc-tackles-paye-error-backlog/447539

Speaking to The Guardian, ICAEW Tax Faculty manager Anita Monteith said that those taxpayers whose underpayments were the result of HMRC errors when calculating their tax codes manually would not have to pay up.

“HMRC can agree to give up collecting an underpayment if they had the right information to calculate tax deductions and did not use it when they should have done,” she said.

It would seem if you paid the correct amount of tax on you PAYE monies, and the correct amount of tax on you savings, but combined it pushed you into the 40% tax bracket by a small amount, then the HMRC had the correct inormation to adjust your tax code for the coming or future tax year. So in essence if they did not adjust your tax code, then the argument presented in the link would be correct, so you could challenge the money owed, as you paid your tax, they had the correct information etc.

Thats if this is an issue?

http://www.google.com/hostednews/ukpress/article/ALeqM5hiNtTAVvOHR4jru5M4RayjJUj03A

Share this post


Link to post
Share on other sites

PAYE Tax Code Error - Challenge it!

It would seem if you paid the correct amount of tax on you PAYE monies, and the correct amount of tax on you savings, but combined it pushed you into the 40% tax bracket by a small amount, then the HMRC had the correct inormation to adjust your tax code for the coming or future tax year. So in essence if they did not adjust your tax code, then the argument presented in the link would be correct, so you could challenge the money owed, as you paid your tax, they had the correct information etc.

Thats if this is an issue?

http://www.google.com/hostednews/ukpress/article/ALeqM5hiNtTAVvOHR4jru5M4RayjJUj03A

The only problem with this statement, is that HMRC are not notified of any investment income you receive, therefore if your investment income which you receive on top of your PAYE income, pushes you into the higher rate tax band, they cannot adjust your tax code to ensure the correct tax is paid. Whose responsibility is it to ensure the correct tax is paid ?, only the individual concerned actually knows what their total income is, so therefore the responsibility must surely fall on the individual ?.

Share this post


Link to post
Share on other sites

The only problem with this statement, is that HMRC are not notified of any investment income you receive, therefore if your investment income which you receive on top of your PAYE income, pushes you into the higher rate tax band, they cannot adjust your tax code to ensure the correct tax is paid. Whose responsibility is it to ensure the correct tax is paid ?, only the individual concerned actually knows what their total income is, so therefore the responsibility must surely fall on the individual ?.

I self access so no experience but if you work and have savings, which i see debated regularly on some sites, i just thought it may apply, because i did not no?

But say you earn £35k per annum PAYE, so taxed at 20% source, say you get £12k per annum in savings interest before tax is paid at 20% savings tax, so you total gross per annum is £47k, which puts you above the 20% threshold, and into the 40% threshold by around £3k, so you owe another 20% of £3k, which is £600.00.

HMRC need to adjust your tax code the following year to claw back the £600.00, is this what this debacle is all about, just a thought?

P

Edited by Panda

Share this post


Link to post
Share on other sites

The only problem with this statement, is that HMRC are not notified of any investment income you receive, therefore if your investment income which you receive on top of your PAYE income, pushes you into the higher rate tax band, they cannot adjust your tax code to ensure the correct tax is paid. Whose responsibility is it to ensure the correct tax is paid ?, only the individual concerned actually knows what their total income is, so therefore the responsibility must surely fall on the individual ?.

HMRC do actually get details of investment income, at least in terms of bank and savings accounts in the UK. They wrote to a friend of mine asking him about certain bank accounts.

Share this post


Link to post
Share on other sites

For over 20 years, I used the P60 to calculate if my tax was correct. Never trusted the HMRC to do it right. Several times I claimed money back and I don't think I ever got an error in my favour. It seems that millions of people don't bother and presume PAYE is always correct.

Even if you keep stum about underpaying, you should keep the money aside in case.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 144 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.