Do HMRC think we have nothing better to do?

[Rufus Stone]

Just a rant really to make me feel better.

I have three sources of taxable income:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. Part of my tax code is allocated to this.
3. Pension (not State). None of my tax code is allocated to this.

All are paid via standing orders. Runs smoothly, no adjustments perceived until the tax code possibly changes in 2028.

In their wisdom HMRC have decided to adjust my tax code allocation for 2025-26 as follows:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. None of my tax code is allocated to this.
3. Pension (not State). Part of my tax code is allocated to this.

So, the payroll operator needs to make two manual adjustments.
I need to make an online manual adjustment to one standing Order.
I need to write a letter to the bank to alter the other standing order (no online access) and they will have to make a manual adjustment.

All for absolutely no difference in the tax payable or when HMRC collect the tax.

Or, I have to go online to HMRC and try to change it back!

[MitchT]

Rufus Stone said:

Do HMRC think we have nothing better to do?

Simple answer. Yes.

I had to phone them up. Half an hour going round in circles trying to get their diabolical voice recognition to understand what I was saying. Another half an hour sitting in a queue. Then a recorded message saying "all of our operators are busy, try again later, goodbye" and the phone goes dead.

If they were too busy they could have told me that at the start instead of wasting an hour of my time.

Hateful organisation.

Edited by MitchT on Saturday 22 February 10:25

[nammynake]

HMRC and their archaic technology are hopeless. If they were a private company they’d have gone under long ago. What in principle should be a relatively simple data-driven calculation has been turned into a pile of dog st, frankly.

[Eric Mc]

Can't wait for MTD.

[TwigtheWonderkid]

Rufus Stone said:

Just a rant really to make me feel better.

I have three sources of taxable income:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. Part of my tax code is allocated to this.
3. Pension (not State). None of my tax code is allocated to this.

All are paid via standing orders. Runs smoothly, no adjustments perceived until the tax code possibly changes in 2028.

In their wisdom HMRC have decided to adjust my tax code allocation for 2025-26 as follows:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. None of my tax code is allocated to this.
3. Pension (not State). Part of my tax code is allocated to this.

So, the payroll operator needs to make two manual adjustments.
I need to make an online manual adjustment to one standing Order.
I need to write a letter to the bank to alter the other standing order (no online access) and they will have to make a manual adjustment.

All for absolutely no difference in the tax payable or when HMRC collect the tax.

Or, I have to go online to HMRC and try to change it back!

My wife had similar recently. A phone call to HMRC and they reverted it back to how it was.

[CLK-GTR]

My wife has had 3 tax code changes in 3 months, the last of which has resulted in £2k less going into her bank account each month. Nothing has changed with her situation during this time.

If they weren't such a hopeless organisation I'd call them, as it is I think its easier just to wait for year end and sort it in the self assessment.

[Rufus Stone]

TwigtheWonderkid said:

My wife had similar recently. A phone call to HMRC and they reverted it back to how it was.

What motivates them to change it though I wonder.

[MaxFromage]

Rufus Stone said:

What motivates them to change it though I wonder.

Computer systems that have no redeeming qualities whatsoever.

I have a client who had a car benefit added to their PAYE code. Why you ask? Because they had a car on their code 5 years ago, and for no apparent reason was added back on again.

[MaxFromage]

CLK-GTR said:

My wife has had 3 tax code changes in 3 months, the last of which has resulted in £2k less going into her bank account each month. Nothing has changed with her situation during this time.

If they weren't such a hopeless organisation I'd call them, as it is I think its easier just to wait for year end and sort it in the self assessment.

Unfortunately this is probably your best route. It's Russian roulette trying to get codes changed correctly.

[Sheepshanks]

Rufus Stone said:

Just a rant really to make me feel better.

I have three sources of taxable income:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. Part of my tax code is allocated to this.
3. Pension (not State). None of my tax code is allocated to this.

All are paid via standing orders. Runs smoothly, no adjustments perceived until the tax code possibly changes in 2028.

In their wisdom HMRC have decided to adjust my tax code allocation for 2025-26 as follows:

1. Employment 1. Part of my tax code is allocated to this.
2. Employment 2. None of my tax code is allocated to this.
3. Pension (not State). Part of my tax code is allocated to this.

So, the payroll operator needs to make two manual adjustments.
I need to make an online manual adjustment to one standing Order.
I need to write a letter to the bank to alter the other standing order (no online access) and they will have to make a manual adjustment.

All for absolutely no difference in the tax payable or when HMRC collect the tax.

Or, I have to go online to HMRC and try to change it back!

When did you start getting the pension? Normally tax code is applied to pension (non-state) first.

[Eric Mc]

If you are receiving the State Pension, then the code is applied to THAT first. Anything left over is applied to other PAYE taxed pensions/employments.

If your State Pension exceeds your personal tax allowance, a negative (K) code will apply to your other PAYE taxed income source(s).

[Sheepshanks]

Eric Mc said:

If you are receiving the State Pension, then the code is applied to THAT first. Anything left over is applied to other PAYE taxed pensions/employments.

If your State Pension exceeds your personal tax allowance, a negative (K) code will apply to your other PAYE taxed income source(s).

Sorry, I misunderstood what I was told , which was that state pension is always paid gross. Standard tax code exceeds the state pension, so then it's just a matter of dealing with what's left.

I'm told the preference is to apply the remainder (or the whole lot if no state pension) to other pensions but it's probably more automated now so perhaps it's more random.

[Austin Prefect]

There is a body of opinion within HMRC that PAYE workers entire salary should initially go to them. Then they can do the calculations and remit what's left after tax and NI to the employee

[Panamax]

Multiple sources of income always seem to put the PAYE system into a complete spin. They chop and change by codes and how they apply them on a regular basis. I just leave them to it and sort it all out via SA at the end of the year. Which itself usually results in their attempting make further changes....

[clockworks]

I used to have to phone them every year to get my tax code reallocated - part-time employment, self-employment, and two company pensions.

Since getting my state pension, I haven't needed to do anything - most of it automatically goes against the state pension, with a few quid left on one of the company pensions

[irc]

I phone them once a year. One occupational pension. Two employments and arranging to get higher rate relief on a one off payment to a private pension.

In fairness, other than needing to wait 45 minutes to get through it works smoothly.

My tax code is all on the pension. Pay standard fee rate income tax on one employment and higher rate on the other.

Life would be simpler if I wasn't in Scotland and hitting higher rate at £43k.

[Mr Whippy]

I’m confused why they don’t have a simple flow chart function to determine all of it.

Once set up it just works.

They could show you it.

You could see how it works.

It’d leave no ambiguity.

They could sack 90% of their staff….

Ahaaaa, I think I figured out why it’s like it is.


And the ‘very busy’ phone line thing, they’re always very busy. Everyone you call these days is.
To pretend they’re ever quiet is a lie. Lying should be punishable in public sector.

[IJWS15]

They are stupid…..

I have four pensions in payment and worked the first nine months of last year as a contractor on a decent day rate.

They gave me a negative code against one of my pensions to cover tax due from the contracting, everything else is flat 20%. The code means I have a personal allowance of around -32k allocated to an income stream of less than 10k a year and IIRC they can’t deduct more than a certain sum so are only taking 430ish a month in tax from that pension.

I can’t be bothered to tell them.

I am expecting a bill at the end of the year - the money is in premium bonds.

Wife has a WPP of less than 200 a month and state pension just started paying out. HMRC just added over £20k of “other” income to her coding. WTF… have asked them to remove it. I presume they meant to make the change to someone else’s coding.

[alangla]

Austin Prefect said:

There is a body of opinion within HMRC that PAYE workers entire salary should initially go to them. Then they can do the calculations and remit what's left after tax and NI to the employee

Was that not an actual policy proposal during the latter days of Brown in number 11 or possibly when he was in number 10? Thankfully it didn’t go anywhere at that point but no doubt it’ll surface again at some point.

[Mr Whippy]

alangla said:

Austin Prefect said:

There is a body of opinion within HMRC that PAYE workers entire salary should initially go to them. Then they can do the calculations and remit what's left after tax and NI to the employee

Was that not an actual policy proposal during the latter days of Brown in number 11 or possibly when he was in number 10? Thankfully it didn’t go anywhere at that point but no doubt it’ll surface again at some point.

Kinda not Pay As You Earn any more.