The Taxman cometh!

PATMAU
PATMAU Forum Participant Posts: 250
edited March 2016 in General Chat #1

I have just had my notice of coding through from HMRC. I have underpayed them by £1 in a previous year, so apart from deducting the Old Age Pension from the tax free allowance as is the norm, they have also reduced my tax free allowance by a further £5 so they can collect their £1 underpayment. Big Corporations, banks included, get away with out paying the tax they owe, but an OAP owes them £1 and they make darn sure they collect it.  Still I suppose I should be delighted to have helped the Govt plug the hole in the Country's deficit.   Rant over.

Comments

  • volvoman9
    volvoman9 Forum Participant Posts: 1,053
    500 Comments
    edited March 2016 #2

    The advantage the big banks have over us pensioners is that they can afford the best in accountants to find and exploit the loopholes
    Undecided.

    peter.

  • IanH
    IanH Forum Participant Posts: 4,708
    1000 Comments
    edited March 2016 #3

    The mind boggles that they spend time on such trivial amounts while letting fortunes slip away over a champagne lunch......

  • artyboo
    artyboo Forum Participant Posts: 457
    edited March 2016 #4

    I have just had my notice of coding through from HMRC. I have underpayed them by £1 in a previous year, so apart from deducting the Old Age Pension from the tax free allowance as is the norm, they have also reduced my tax free allowance by a further £5 so
    they can collect their £1 underpayment. Big Corporations, banks included, get away with out paying the tax they owe, but an OAP owes them £1 and they make darn sure they collect it.  Still I suppose I should be delighted to have helped the Govt plug the hole
    in the Country's deficit.   Rant over.

    Write your comments here... AND I am guessing they set the original tax code themselves and you trusted them (as we all would). Appalling! Write to your MP, if nothing else you can get it off your chest officially. Good luck

  • Cornersteady
    Cornersteady Club Member Posts: 14,427 ✭✭✭
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    edited March 2016 #5

    this time last year (I remember writing about it on CT) the taxman (or woman) said I had underpaid and would adjust my tax code to get it back this year. I couldn't understand why as I'd been in the same job, or anything else had changed, so I rang them
    up and got no where. Anyway during this year I have kept a closer eye using their new tax code and it appeared that this year I have overpaid. I rang them up last week and they agreed and (wait for it) didn't understand why the tax code was changed. Anyway
    I'm due a refund in the next pay packet or so, it's just been a case of enforced saving!

  • Oneputt
    Oneputt Club Member Posts: 9,144 ✭✭✭
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    edited March 2016 #6

    V9 is right and then there comes a point where the company accountants then negotiate with HMRC and the final payment is usually a lot less than the original tax demand

  • KjellNN
    KjellNN Club Member Posts: 8,670 ✭✭✭
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    edited March 2016 #7

    A few years back, HMRC had a problem sending out the demands for the January self assessment payments, so OH had to try to work out how much I was due to pay.

    Turned out she had estimated a little wrong and I underpaid by 5p.

    They were kind enough to write to me (how much did that cost?) and tell me that they would not demand immediate payment of the missing 5p..........but would add it on to the following year's payment.......and they did!

  • kenexton
    kenexton Forum Participant Posts: 306
    edited March 2016 #8

    1p ,I kid you not!When my Dad died I sorted out his and my Mum's tax issues for Mum.After waiting ages on the phone etc we finally got a sum owing out of them,which I paid in full.Blow me down when a letter arrived from Cumbernauld requesting 1p in unpaid
    tax!I sellotaped  1p to the form and sent them the widow's mite!Upon reflection I should have put on a 2p piece and asked for the change!I copied the demand and framed it as a testimony to HMRC's  avarice and incompetence.

  • redface
    redface Forum Participant Posts: 1,701
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    edited March 2016 #9

    Despite all our knocking them, I have to say that this years tax coding letter is by far the easiest to understand I have ever received. However I do still wait for further correspondence relating to any overpayment/underpayment - hopefully that will be
    easily understood as well!

  • PATMAU
    PATMAU Forum Participant Posts: 250
    edited March 2016 #10

    I have just had my notice of coding through from HMRC. I have underpayed them by £1 in a previous year, so apart from deducting the Old Age Pension from the tax free allowance as is the norm, they have also reduced my tax free allowance by a further £5 so
    they can collect their £1 underpayment. Big Corporations, banks included, get away with out paying the tax they owe, but an OAP owes them £1 and they make darn sure they collect it.  Still I suppose I should be delighted to have helped the Govt plug the hole
    in the Country's deficit.   Rant over.

    Write your comments here... AND I am guessing they set the original tax code themselves and you trusted them (as we all would). Appalling! Write to your MP, if nothing else you can get it off your chest officially. Good luck

    I have wrote so many letters to HMRC since I retired in 2010 (and also OH) that I have got to the point where it has almost become a sport.  Sometimes I win, this time I lose.  But I must say that this left me totally speechless, £1, for heavens sake.  I
    did feel like sending them £1 in halfpennies, but it would only cost me more in stamps.  Our new MP unlike our previous one, is gaining a reputation for not answering correspondence so I don't think I'll bother.  I did, when walking past HMRC in Whitehall,
    shout out, "persecutors of OAPs", which my OH said was not a good thing to do as at the time there was a demo taking place and lots of Policemen around. Lol. 

  • KjellNN
    KjellNN Club Member Posts: 8,670 ✭✭✭
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    edited March 2016 #11

    Despite all our knocking them, I have to say that this years tax coding letter is by far the easiest to understand I have ever received. However I do still wait for further correspondence relating to any overpayment/underpayment - hopefully that will be
    easily understood as well!

    Yes, I noticed they had "dumbed down" the coding notice!

    I actually found it a little  patronising.

    However, I will say that any time I have needed to phone HMRC in the last 5 years,  they have been very pleasant and helpful, so I am pretty pleased with the service lately.

  • SteveL
    SteveL Club Member Posts: 12,303 ✭✭✭
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    edited March 2016 #12

    It obviously varies from office to office. After submitting my figures to the tax man, I was surprised to receive a letter saying, although there was a small underpayment (unspecified) they were not going to adjust my coding to collect it. They also wrote
    that they would not provide a document showing their calculations unless I insisted. I thought this a very common sense approach, why spend money on collecting    and documenting a small amount. It clearly isn't a universal policy however.

  • IanH
    IanH Forum Participant Posts: 4,708
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    edited March 2016 #13

    It obviously varies from office to office. After submitting my figures to the tax man, I was surprised to receive a letter saying, although there was a small underpayment (unspecified) they were not going to adjust my coding to collect it. They also wrote
    that they would not provide a document showing their calculations unless I insisted. I thought this a very common sense approach, why
    spend money on collecting    and documenting a small amount. It clearly isn't a universal policy however.

    Because they'd already done the calculation and could have simply appended it to that letter, to avoid having to deal with your potential reply asking for the calculations and then having to send it separately.......I would say.

    Why write to tell you there has been an underpayment and then not tell you how much? Why not just write it off and not bother writing at all?

    Civil service mentality.......always trying to make a job out of nothing.....

  • SteveL
    SteveL Club Member Posts: 12,303 ✭✭✭
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    edited March 2016 #14

    It obviously varies from office to office. After submitting my figures to the tax man, I was surprised to receive a letter saying, although there was a small underpayment (unspecified) they were not going to adjust my coding to collect it. They also wrote
    that they would not provide a document showing their calculations unless I insisted. I thought this a very common sense approach, why
    spend money on collecting    and documenting a small amount. It clearly isn't a universal policy however.

    Because they'd already done the calculation and could have simply appended it to that letter, to avoid having to deal with your potential reply asking for the calculations and then having to send it separately.......I would say.

    Why write to tell you there has been an underpayment and then not tell you how much? Why not just write it off and not bother writing at all?

    Civil service mentality.......always trying to make a job out of nothing.....

    The letter had my new tax code, so they would have been sending it anyway, there were no additional bits of paper. When I have been sent the calculations before, these have always come separate to the new code and from a different section of the tax office.

  • IanH
    IanH Forum Participant Posts: 4,708
    1000 Comments
    edited March 2016 #15

    It obviously varies from office to office. After submitting my figures to the tax man, I was surprised to receive a letter saying, although there was a small underpayment (unspecified) they were not going to adjust my coding to collect it. They also wrote
    that they would not provide a document showing their calculations unless I insisted. I thought this a very common sense approach, why
    spend money on collecting    and documenting a small amount. It clearly isn't a universal policy however.

    Because they'd already done the calculation and could have simply appended it to that letter, to avoid having to deal with your potential reply asking for the calculations and then having to send it separately.......I would say.

    Why write to tell you there has been an underpayment and then not tell you how much? Why not just write it off and not bother writing at all?

    Civil service mentality.......always trying to make a job out of nothing.....

    The letter had my new tax code, so they would have been sending it anyway, there were no additional bits of paper.
    When I have been sent the calculations before, these have always come separate to the new code and from a different section of the tax office.

    My point exactly.......

  • Tammygirl
    Tammygirl Club Member Posts: 7,957 ✭✭✭
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    edited March 2016 #16

    A number of years ago the tax office kept changing OHs tax code, despite nothing changing. He then got a letter saying that he owed them £1500 in underpaid taxSurprised as
    you can imagine this came as a shock. The OH disputed it and after many(and I do mean many) phone calls and correspondence they agreed that he didn't owe anything, in fact it was them that owed him the money. OH was at the time doing his accountancy course
    at the college,  that term was the tax partLaughing to this day he still has all the paperwork relating to it

  • cyberyacht
    cyberyacht Forum Participant Posts: 10,218
    1000 Comments
    edited March 2016 #17

    Recently, I haven't had too much problem with HMRC. A while back though, they managed to cock up OH's tax assessment for six years out of seven. Having a financial and mumber crunching background, I'm able to keep them on their toes. That may not be the
    case for some poor little old lady.

  • hostahousey
    hostahousey Forum Participant Posts: 7,240 ✭✭✭
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    edited March 2016 #18

    Recently, I haven't had too much problem with HMRC. A while back though, they managed to cock up OH's tax assessment for six years out of seven. Having a financial and mumber crunching background, I'm able to keep them on their toes. That may not be the
    case for some poor little old lady.

    Write your comments here...Or Man Cyber !