Thread: Check Your Tax Code Now

Warnings are appearing in various forms of the media to check your Tax Code .
I have been a “ victim “ of the new Tax Code Software being used by HMRC . In May of last year everything was normal and out of the blue I received a new Tax Code and chaos developed . In a period of six months since then I have telephoned and written to HMRC and have had a further six Tax Codes … I am now where I was back in May . The annoying thing is that my Pension suppliers were acting on new Tax Codes as they received them and deducting what they incorrectly believed to be unpaid Tax . I have been further advised that any errors in my Tax paid this year will not be corrected until the Tax year 2011/2012 .
I do not blame the software but the way it has been rolled out apparently without adequate parallel testing … why does the Public Sector always seem to have problems with such work ? I have been involved in the implementation of complete Business Solution IT Projects in the private sector where failure was not an option on the go live date .

Well they must be desperate as I have had my notification of change of basic rate, reduced by a whole £8, so they can get back the £1.83 I owe them!

I've been put on a full 40% take back, and I'm not near that limit.

I got a new tax code which was based on THEIR assessment of me earning £100K next year. (oh how I wish !). Immediately wrote back saying that I was not going to be promoted to General anytime soon and suggest that they have another guess beased on may last 6 tax codes during which I've been in the same position.

Normally, I would just glance at the notice and file it way because they've generally got it right these past 6 years, however, I'm glad that I decided to check it out purely on the basis that the code seemed to be totally diefferent to all the others.

It's a worry, but they've got until 6 Apr 10 to sort it out so that's plenty of time isn't it ? I said that's plenty of..........

SO, WHEN YOU GET YOUR TAX CODE NOTICE, GO TO NOTE 2 AND CHECK WHAT THOSE F*CKWITS IN Cardiff ASSESS WHAT YOUR EARNINGS WILL BE FOR THE NEXT FINANCIAL YEAR.

Yes, it's a mess. And it's official!!!

When you receive your tax code, you should check it. If it isn't close to 675L without good reason, then you should ring the Help line and discuss it.

Reportedly, those who are most affected are those who have changed their job in the last tax year. So, if you have recently joined or left the Army.... :D

Litotes

Originally Posted by Litotes

Yes, it's a mess. And it's official!!!

When you receive your tax code, you should check it. If it isn't close to 675L without good reason, then you should ring the Help line and discuss it.

Reportedly, those who are most affected are those who have changed their job in the last tax year. So, if you have recently joined or left the Army.... :D

Litotes

Thanks for the heads up.

Off topic for a slight comparison :-
36% of my earnings goes to the Norwegian government. How does that compare with the rest of you 1 house 1 wife and 2 kids type normal average families. I dont pay extras either like NI contributions or council tax.

SK

UK Sterling comparison - as best I remember the figures:
I can't be arsed to look them up.
earn over £6750, pay 20% tax on any income above that figure. If you go over £36,400 pay 40% on anything above £36,400.

Nat Ins only has to be paid for 30 working years of your life to reach 'Full Contributions' (State pension, health, etc), but it's illegal to stop paying it even after the 30 years are up. NI is 11% of earnings.

With what's left, you get to pay 17.5% VAT on goods and services, virtually everything.

On a bad day, you'll get to spend 39p of every pound you've earned.

Originally Posted by MadKev

UK Sterling comparison - as best I remember the figures:
I can't be arsed to look them up.
earn over £6750, pay 20% tax on any income above that figure. If you go over £36,400 pay 40% on anything above £36,400.

Nat Ins only has to be paid for 30 working years of your life to reach 'Full Contributions' (State pension, health, etc), but it's illegal to stop paying it even after the 30 years are up. NI is 11% of earnings.

With what's left, you get to pay 17.5% VAT on goods and services, virtually everything.

On a bad day, you'll get to spend 39p of every pound you've earned.

Good but simplistic!!!

Buy petrol or diesel: pay 80% tax.

Simples...

Litotes

HMRC are quite helpful on the phone, I had my tax code sorted out in no time

Originally Posted by purplestar

HMRC are quite helpful on the phone, I had my tax code sorted out in no time

I have to say that's been my experience as well. If you go to your local office for expert advice you're likely to get it, as long as you don't try to be clever/stroppy or pull the wool over their eyes. Very often (though not close to deadlines like now, understandably) they'll be happy to go through your self-assessment return with you, though they won't/can't actually complete it for you. And it comes free of charge - unless you've got a really complicated tax picture, why pay an accountant several hundred quid for the same information? I'd always recommend trying HMRC first.

I too have always found HMRC helpful but sometimes a little slow . I am sure I heard that their “ Call pick up rate “ when you dial in is dreadful .
What I cannot understand and to me what has complicated my situation is to tax each Pension at source . I receive three none State Penions . At one time I paid all of my Tax on one Pension and received full amounts on all the others . This meant one point of contact when there was a change in Tax Code etc . I am now taxed on each of my none State Pensions at source … I now get correspondence from three Tax offices and Pension suppliers …. two in England and one in Scotland . HMRC are aware of incomes from each of the three because of P60 returns they receive annually . There seems to be a vast amount of paperwork ... yes paper being shuffled around to achieve the same result . No wonder errors occur . If it ain't broke why fix it ?

On the Money Programme on Radio 4 30 Jan a spokeswoman from HMRC confirmed they do have a problem ( Software ... my words ) and are sending out incorrect Tax Codes and called upon us to be vigilant . When pressed as to why HMRC were not correcting the problem at source and reissuing correct Tax Codes there was a typical wishy washy none answer .

Originally Posted by Border_Reiver

I too have always found HMRC helpful but sometimes a little slow . I am sure I heard that their “ Call pick up rate “ when you dial in is dreadful .
What I cannot understand and to me what has complicated my situation is to tax each Pension at source . I receive three none State Penions . At one time I paid all of my Tax on one Pension and received full amounts on all the others . This meant one point of contact when there was a change in Tax Code etc . I am now taxed on each of my none State Pensions at source … I now get correspondence from three Tax offices and Pension suppliers …. two in England and one in Scotland . HMRC are aware of incomes from each of the three because of P60 returns they receive annually . There seems to be a vast amount of paperwork ... yes paper being shuffled around to achieve the same result . No wonder errors occur . If it ain't broke why fix it ?

On the Money Programme on Radio 4 30 Jan a spokeswoman from HMRC confirmed they do have a problem ( Software ... my words ) and are sending out incorrect Tax Codes and called upon us to be vigilant . When pressed as to why HMRC were not correcting the problem at source and reissuing correct Tax Codes there was a typical wishy washy none answer .

The same programme reported that the Ombudsman reckoned that 20 million telephone calls to HMRC had been given a stiff ignoring!

That is one hell of a stiff ignoring! And a large number of unhappy customers, sorry, taxpayers!

Litotes

I made the mistake of phoning the number on the letter, after a quick redial to Centre One helpful lady told me yip yer fooked.

It helped getting a reference number, off her to deal with any future letters.

ahhh I wondered why out of the blue i'd been sent a new tax code.