HMRC, PAYE and a bit of a rant

[Mr Gearchange]

I am a humble employee who pays tax through the PAYE scheme.
My total BIK for the tax year 2012/2013 was £210.00.
I moved employment in December - but handed in my P45 on the first day and was on the 'right' tax code from my first pay cheque.

Just filled in my Self Assessment for HMRC to deliver the fantastic news that I owe them £3340 to be paid before 31st January 2014.

I have absolutely no objections to paying tax - but it really boils my piss when they take it all up front - then tell me I owe them another 3 grand.

If they are going to fk it up to that extent then there seems to be no point to PAYE. I might as well withhold everything until end of the year, make some money off they tax I would have paid monthly and then pay the correct amount in one go.

I appreciate that this is a pointless whinge - but it's really riled me that I'm 3k worse off than when I got up this morning.

[Eric Mc]

Are you sure that you owe them that amount of money?

[Mr Gearchange]

No - I'm not sure.
However I have filled in all the details for the on-line self assessment - checked, double checked and checked again that I have all the details correct - which I do (for as long as my P60 and P11D are correct) and it comes out that I owe them £3k.

I have no objections paying tax - I'm lucky enough to have a job and a job that is well paid. Although it's not a popular view on PH I don't mind paying tax to support those in society who are less lucky than I am.

However when they have a system that collects tax from source - and see's fit to deduct if before you see it and they still get it wrong to the tune of £3k - that really pisses me off.

ETA - having double checked with an on-line tax calculator HMRC are correct (as you would expect them to be). I'm still annoyed though. Paying an extra £270 a month wouldn't be too bad - but having to fork out the lot in one lump sum is painful..

Edited by Mr Gearchange on Monday 13th January 18:01

[Mats]

If you have underpaid tax. I have been in the same situation in the past. HMRC can roll this into your personal allowance and change your tax code which in turn allows you to pay in instalments monthly during the tax year. Give them a ring.

I agree with your sentiment. PAYE is frustrating when earning high amounts.

[ALawson]

Mats said:

If you have underpaid tax. I have been in the same situation in the past. HMRC can roll this into your personal allowance and change your tax code which in turn allows you to pay in instalments monthly during the tax year. Give them a ring.

I agree with your sentiment. PAYE is frustrating when earning high amounts.

I thought you could only do that for up to £3k.

[schmunk]

Did you earn over £100,000?

If so, your Personal Allowance will be reduced, which may not have been correctly coded in to your PAYE withholdings.

Without any other evidence, that would be my first guess at the reason for the underpayment.

Edited by schmunk on Tuesday 14th January 13:59

[mx stu]

What was your tax code for the year? Do you you have your coding notice to hand? If so what's been included?

[Mr Gearchange]

You can only get the underpayment rolled into your new tax code if its under 3k and you file before end of the year.

I believe that main issue is the fact that I went through the personal allowance threshold which wasn't accounted for in my PAYE coding so there is a shortfall.

[schmunk]

I'm sure it's no consolation, but be assured that you are certainly not alone in having this problem.