Have They Changed Your Tax Code?

Hi aom,

If it changed to reflect your incredibly high salary, being a high rate tax payer and all, there ain't nowt can be done!! :D

Seriously, thanks for commenting, just so others know it's not just our clients - we're just trying to let as many tradesmen know about it. (Something other tax agents/ accountants should be doing too :wondering:.
 
It's probably worth checking anyway, seeing as mistakes can be made by HMRC :mad:
 
Hope you don't mind me bumping this up again - one year on!

Every day we're dealing with calls and claims from guys who did not act on their tax code changes and left them higher than they should have been.

The result? We do the return for them, with their expenses for this current tax year (2011 - 2012), they have not had such big expenses so have in fact, underpaid tax. They will actually have seen the "benefit" in larger take home pay throughout the year and that's where the "underpayment" has arisen.

Not only does this result in them owing the tax man money, it also means we don't get paid either - they are our client, it's part of the service. :noworry:

Unfortunately, because the situation of tax code changes is made so complicated and difficult (in some cases/ some HMRC staff), the man having to pay tax back often thinks it's something to do with how we did their return on previous years. :(

It actually has nothing to do with the money we got back for them for those previous years. That tax refund was legally due to them.

So, have a read of that opening post and subsequent discussion and just be aware of changes to your pay and tax code letters. Even if you are a client of ours, HMRC don't inform us of the new code.
 
What happens if they change your tax code and you don't claim at the end if the year
 
Hi struan,

In an ideal world, HMRC will have issued everyone (PAYE) with the correct tax code. The tax code you have makes certain assumptions (like personal allowance - 2011 - 2012 that was £8105, hence tax code of 810L), along with other information gathered from previous years.

If your tax code was increased, it will have been based on a previous years' claimable expenses and HMRC are then incorrectly assuming that you will have those very same expenses every year. As I said, in an ideal world, this would be true, but as the first post in this thread explained, for most workers, tax claims and expenses will change year on. That's the reason we do our best to get the codes changed back to basic, so that the correct tax claims and payments can be made.

If you are happy that the tax code you have truly reflects the tax you should be paying, then you need do nothing.

If you are registered for self assessment tax returns (remember, you don't have to be self employed or CIS to be self assessed) then even if you didn't have your tax code changed and you feel your expenses have been correctly reflected, you still need to do a tax return for zero amount... and get off self assessment for the future.

The problem with them changing your tax code on previous information is that if your expenses are not as much this time, you will owe tax because you will have under paid.

Hmmm, not sure I am explaining myself very well!

If you're a client and you should have done a return, call the office asap to get it sorted. If you're not a client and you just want this explained a little clearer, call the office anyway - free advice and all that!

Hope this helps!!
 
Thanx beter tax iv been using rift I'm working further afeild this tax year so my expenses will be up on previous years if its ok il still call tho jst for peace of mind as find rift pushy
 
Of course you can call us :). We're always happy to help. Just tell whoever you speak to (Eddie probably, although you may get Soraia if you're lucky ;)) that you're from here - he'll sort you out fine.
 
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