2013 - 2104 Tax Return

[PurpleMoonlight]

Morning.

For the first time I have completed my tax return online. Previously I had always done a paper one.

I am due to pay HMRC £63.

I have a credit held by HMRC from previous years of £13 which I have never botherd to reclaim (it is showing as an overpayment).

Will they automatically offset one against the other or so I somehow need to tell them to do so?

[Eric Mc]

They should. They will send you a Statement of Account sometime around the end of December/early January which should show the net amount payable on 31 January 2014.

[PurpleMoonlight]

Many thanks.

Just noticed the heading should be 2012 -2013, Oh well, never mind.

[Eric Mc]

I assumed the heading wasn't quite right

[The Leaper]

If you are employed you will be subject to PAYE. Where tax is either due to be paid or refunded, in my experience HMRC always adjust the PAYE Coding so that the amount is collected or repaid, as the case may be, over the remainder tax year via the pay packet.

R.

[PurpleMoonlight]

I elected not to do it that way as the payment is so small.

[Eric Mc]

The Leaper said:

If you are employed you will be subject to PAYE. Where tax is either due to be paid or refunded, in my experience HMRC always adjust the PAYE Coding so that the amount is collected or repaid, as the case may be, over the remainder tax year via the pay packet.

R.

It's an option.

If a taxpayer completes Self Assessment tax returns, they can CHOSE to have tax amounts collected or refunded by adjusting their current year's PAYE coding. However, the default setting is that the money will be physically paid or repaid. The taxpayer has to elect to have the PAYE coding adjusted.

[sumo69]

Eric Mc said:

It's an option.

If a taxpayer completes Self Assessment tax returns, they can CHOSE to have tax amounts collected or refunded by adjusting their current year's PAYE coding. However, the default setting is that the money will be physically paid or repaid. The taxpayer has to elect to have the PAYE coding adjusted.

Subject to a ceiling of £3000.

One benefit of this is that payments on account for the subsequent year can be avoided if opting to do this.

David

[Eric Mc]

I left that bit for you

[The Leaper]

Well, I have just received HMRC's tax calculation following me sending them my tax return for 12/13, and I owe a modest £400 or so. HMRC have said they will adjust my coding for this tax year. Therefore, no choice. I have no probs with HMRC's decision.

R.

[Eric Mc]

Some people prefer it that way - other's don't. The choice is yours. It is NOT HMRC's though.