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recovering
- Posts: 1623
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Hi, does anyone know how HMRC take an underpayment? A friend had a letter today saying he owes £290 for last year ( no clue how it was underpaid by the employer)
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lifenoteasy
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Hi - tax code should be adjusted and repay over a period of time.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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recovering
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Thanks LNE , I am finding it hard to understand how a big company can get the calculation wrong?
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Adam Davies
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Hi
Yes it is usual to adjust the tax code for the current year to collect any under payment
Regards
Andam Davies
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darth_ivader
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In some cases they will make an adjustment to your tax code to take it over the next year, although last year when I completed my return I was asked to pay mt £109 shortfall by the end of the following January. That said, contrary to popular opinion, for me HMRC have always been easy to work with, if you are in an IVA you are not bankrupt, and they have always been very accomodating.
Call them and discuss your circumstances, I had to do this a couple of times during my IVA and they were helpful and not patronising.
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darth_ivader
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font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by recovering
Thanks LNE , I am finding it hard to understand how a big company can get the calculation wrong?
Self Assessment is a minefield as it includes so many things that HMCE would not know from the information provided by your employer (Benefits,Pensions other income, etc.).
For me, I've averaged a £400 repayment per year because I work from home and use my own car for work (with an allowance).
During an IVA, we dont have the luxury of paying an accountant, but I'm sure we can pool our resources to make this a bit easier?
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lifenoteasy
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Supervisor fees are potentially tax deductable if you are ltd.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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recovering
- Posts: 1623
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- Location: United Kingdom
Sorry if I wasn't clear it's not self assesment that's why it's confusing! They apply the code so surely it should be correct?
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lifenoteasy
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Should be easier going forward under RTI but mistakes still happen.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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footiemad
- Posts: 1889
- Joined: Mon Jun 13, 2011 9:33 am
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There can be many reasons why the tax collected is insufficient. We have under payments most years due to company cars, company health scheme, interest on savings to name but a few! Any underpayment is collected by means of increasing your tax code unless it's over £3,000.
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MrsR
- Posts: 1201
- Joined: Mon Oct 31, 2011 9:30 pm
- Location: United Kingdom
Sounds like your accounts team might need to go back to basics on personal and business tax calculating Recovering !
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
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recovering
- Posts: 1623
- Joined: Mon Sep 26, 2011 8:27 pm
- Location: United Kingdom
I know! it is pretty shoddy for a massive firm