[Albion] Another Tax Post - personal allowance reduction

[Paulie Gualtieri]

I think this is likely although only HMRC could say for definite. This is what Real Time Information (RTI) was designed in part to do, adjust tax codes in real time so unexpected tax bills at the end of the year are avoided. I guess you could roughly estimate if the monthly increase in tax will approximate the tax you think was due on your bonus. On a side note, the quality of staff answering HMRC help lines varies a great deal. Sometime you can get lucky and end up talking to someone who really knows their stuff. Mostly though its inexperienced staff following some sort of script and when they are asked something off script they are no help.

Agree, I may call again (until I get the answer I want!)

 

[Weststander]

Genuinely, call HMRC on 0300 200 3300, and go through the regular monthly gross pay you’ll receive for the rest of the tax year and explaining that the higher month was a one off.

They’ll alter your tax code there and then.

I did this for more daughter recently and someone else. Queue time …. 15 minutes?

 

[cunning fergus]

No other benefits but have exceeded £100k for the first time, I believe as a result employees over this need to complete a self assessment despite paying tax via PAYE

You are in exulted company……….once your earning are over 100k pa you will lose your personal allowance.

https://barnesroffe.com/are-you-paying-the-62-tax-rate/

This was introduced by George Osbourne before you blame the socialists.

Hasta Victoria Siempere.

 

[dazzer6666]

Those earning over £100K (not £50K) must complete a SATR.

To correct something in a post earlier, being a company director no longer has an automatic requirement to file a SATR. Only if there is income not taxed under PAYE. A company director who receives dividends (non PAYE income) up to £10K PA is not required to file a SATR but must still report dividends over £2K and less than £10K to HMRC.

You need to bear in mind that HMRC is not particularly sophisticated. They assume that whatever you received / paid last year will be the same that you will receive / pay this year and will fanny about with the tax code accordingly. I had a client who paid a huge one-off pension contribution and claimed it on his SATR. HMRC then adjusted his tax code assuming that he would be paying the same contribution in the following year and stuck the (unclaimed and assumed) relief in the following year's tax code resulting in a significant underpayment of tax.

Definitely….had several years where my actual tax paid was miles out simply due to my code being adjusted based on extrapolations of certain irregular transactions. On the plus side, I also found SA very efficient - always resolved very quickly once my return was submitted.

 

[Wardy's twin]

I've just had a teacher client who claimed Working From Home Allowance for a 21/22 employment that ended 31 Aug 21. He retired and started taking teacher's pension wef 01 Sep 21. We've submitted his 21/22 Tax Return and now HMRC have coded in the same amount of WFH Allowance into his pension! How can you have job expenses coded into a pension?!? I don't think anyone apart from accountants check this stuff any more, it's all computerised.

It's not the computer at fault it's the analyst who spec"d the system ...

 

[Shropshire Seagull]

It's not the computer at fault it's the analyst who spec"d the system ...

Correct.

Computers NEVER make mistakes [hardware failure accepted].
However, the code running on them can be littered with "undocumented features" [aka bugs].
Yes, sometimes the analyst picks up the wrong requirement, but so too can the programmer misinterpret the spec and so too can the tester not run a scenario to expose the bug.

Below picture is my all time Dilbert fave from my 35 years in IT

 

[Wardy's twin]

Of course what that series of pics misses is the customer acceptance testing....

like you did a 35 year stretch though been retired now for 6 years so started out when computers were computers none of this silicon nonsense - the first machine i worked on had ferrite cores as its logical array.... paid out £12 billion a year when £12billion was massive rather than those throwaway figures that are used now,