Tax Codings - Warning

[Eric Mc]

Just to let you know that I have posted up a thread on this subject over on the Business Forum. As the Business Forum is not always read by everyone, I decided to put an alert on here as well.

HM Revenue and Customs are playing a bit fast and loose with your PAYE codings for 2006/07 so be on the alert.

[shadytree]

tell me about it

[iaint]

What do you mean 'fast and loose' and what are the implications (i.e. over/underpaying)?

Thanks!

[Yugguy]

They suddenly decided to resurrect the fact you had a company car 2 years ago. (this happened to me)

[Eric Mc]

By "fast and loose" I mean that they are taking it upon themselves to ASSUME what your Self Assessment tax liability is going to be and then collecting the ASSUMED amount up to two years earlier than necessary. Being an assumed amount, it will naturally not be correct and they will have to make further coding adjustments to correct it to the proper amount. By then, of course, up to two years will have passed and your latest codings will contain corrections of old incorrect assumptions plus the LATEST incorrect assumptions.

No one will ever know where they stand.

You have the right to tell them not to carry out these coding changes but it is up to YOU to contact them.

[Ian Lewis]

Thanks Eric !!

[eccles]

Eric Mc said:

Being an assumed amount, it will naturally not be correct and they will have to make further coding adjustments to correct it to the proper amount. By then, of course, up to two years will have passed and your latest codings will contain corrections of old incorrect assumptions plus the LATEST incorrect assumptions.

sir humphrey would be proud of a sentance like that!

[fozzi]

Grrrrr... not again!! They tried doing this to me a couple of years ago, ended up having 3-4 notice of change letters before they finally got it right!

[Flat in Fifth]

thanks Eric mc I wondered what the devil was going on, will now take a closer look.