kittingerjump Posted September 4, 2010 Share Posted September 4, 2010 http://www.bbc.co.uk/news/uk-11186397 Up to six million people have paid an incorrect tax amount. There's been a strong reaction to this. Personally, I find the whole tax system (paye, self employed) unnecessarily complicated. Quote Link to comment Share on other sites More sharing options...
kittingerjump Posted September 4, 2010 Author Share Posted September 4, 2010 (edited) duplicate topic, mods please delete Edited September 4, 2010 by kittingerjump Quote Link to comment Share on other sites More sharing options...
jaynewcastle Posted September 4, 2010 Share Posted September 4, 2010 Its amazing how many people don't bother checking their tax code(s) to see if they are correct & therefore either overpay/underpay tax as a result Quote Link to comment Share on other sites More sharing options...
blackhole Posted September 4, 2010 Share Posted September 4, 2010 Its amazing how many people don't bother checking their tax code(s) to see if they are correct & therefore either overpay/underpay tax as a result Fairly simple to do , too : http://www.listentotaxman.com/ Quote Link to comment Share on other sites More sharing options...
Errol Posted September 4, 2010 Share Posted September 4, 2010 Is this some kind of ruse to get freshly printed money into peoples' pockets, I wonder? Hmmm ... Quote Link to comment Share on other sites More sharing options...
fellow Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
Errol Posted September 4, 2010 Share Posted September 4, 2010 £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? Quote Link to comment Share on other sites More sharing options...
SHERWICK Posted September 4, 2010 Share Posted September 4, 2010 I just wonder whether they might just forget those who underpaid and concentrate first on handing out the free money? Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 4, 2010 Share Posted September 4, 2010 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? Quote Link to comment Share on other sites More sharing options...
Minos Posted September 4, 2010 Share Posted September 4, 2010 (edited) 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 September 4, 2010 by Minos Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted September 4, 2010 Share Posted September 4, 2010 Do they calculate means tested benefits before or after tax? Because if it's after tax, this has the ability to become a serious, four star cluster*uck. What's new really? Quote Link to comment Share on other sites More sharing options...
campervanman Posted September 4, 2010 Share Posted September 4, 2010 http://www.bbc.co.uk/news/uk-11186397 Up to six million people have paid an incorrect tax amount. There's been a strong reaction to this. Personally, I find the whole tax system (paye, self employed) unnecessarily complicated. UK = banana republic with the disbenefit no bananas and a royal family. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted September 4, 2010 Share Posted September 4, 2010 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... Quote Link to comment Share on other sites More sharing options...
Guillotine Posted September 4, 2010 Share Posted September 4, 2010 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? Quote Link to comment Share on other sites More sharing options...
jaynewcastle Posted September 4, 2010 Share Posted September 4, 2010 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. Quote Link to comment Share on other sites More sharing options...
campervanman Posted September 4, 2010 Share Posted September 4, 2010 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 Quote Link to comment Share on other sites More sharing options...
Panda Posted September 6, 2010 Share Posted September 6, 2010 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 Quote Link to comment Share on other sites More sharing options...
jaynewcastle Posted September 6, 2010 Share Posted September 6, 2010 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 ?. Quote Link to comment Share on other sites More sharing options...
Panda Posted September 6, 2010 Share Posted September 6, 2010 (edited) 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 September 6, 2010 by Panda Quote Link to comment Share on other sites More sharing options...
mikthe20 Posted September 6, 2010 Share Posted September 6, 2010 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. Quote Link to comment Share on other sites More sharing options...
deflation Posted September 6, 2010 Share Posted September 6, 2010 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. Quote Link to comment Share on other sites More sharing options...
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