HMRC estimates suggest up to 5m people may have paid an incorrect amount of tax
The department has begun its end of year reconciliation process (EoYR), two
months earlier than usual, and expects to finish the adjustments by October.
HMRC says it plans to process overpayments and underpayments together, rather
than as separate phases, in order to speed up the process of making corrections
to tax gathered under PAYE.
HMRC calculates that between 2.1m and 3.5m individuals have paid too much tax,
while between 1.2m and 1.6m have paid too little. The average repayment to those
who have overpaid is £379, while the average shortfall is £537.
Taxpayers who do not complete Self Assessment tax returns and owe less than £50
will not have to pay anything; those with more to pay will start to receive
notifications four months earlier than last year, which HMRC says is designed to
help them plan their finances further in advance. Most repayments will be
handled via changes in the individual’s tax code, while those due a refund will
start receiving payable orders from HMRC from next month.
HMRC says that 85% of people on PAYE pay the correct amount of tax, and that
many of the adjustments are down to changes in an individual’s circumstances
over the year. It also says it will be sympathetic to those who say they will
have difficulty paying any additional tax due, with the option to spread over a
maximum of three years if necessary.
After the rush to meet the 31 January deadline
I decided to email clients to encourage them to let me have
their books earlier so that I could stagger the work more evenly and this has
worked very well up to date but there are still 70 jobs to come in. I have
just issued further reminders extending the discount deadline and am hopeful
this will bring in a large number of these. I cannot face the thought of 14 hour
days in December and January again so come on guys !
Sometimes you get a pleasant surprise
A company client of mine had filled in a form
without telling me and HMRC had changed the annual accounts date from the normal
date under company law.
I had completed accounts to 30th June which were
accepted by Companies House but HMRC website would not accept these.
Investigation showed that the tax return was expected to 16th August.
rang the tax inspector and was delighted to be told that HMRC would amend the
return date to agree with the statutory accounts submitted to Companies House.
A victory for common sense.
The saga of my broadband
I used to live in Broadstairs and I had a 5
year contract with BT for a business line which expired this year.
As soon as it was out of contract I rang BT to
ask them to cease it.
Two days later I received an email from BT
saying that they were sorry that I was ceasing my broadband and it would be
cancelled on 17th February 2012.
I immediately rang BT to explain that I had not
requested that my broadband be cancelled.
I was assured that the error had been noted and
that my broadband would not be cancelled.
About three days later I received a letter
saying much the same as the email.
Once again I rang BT and I again was assured that
my broadband would not be cancelled.
On 14th February I went away for a few days
rest and recuperation following the marathon hours worked in December and
January completing self assessment returns.
When I returned from my break on 17th
February I discovered that ........
my broadband had been cancelled.
I spent most of Friday morning on the phone to
BT trying to get the service re-connected and was finally promised at 1.00 pm
that it would be back online within 5 hours.
6.00 pm passed and a recorded announcement said
BT business services were closed until Monday.
So on Monday I was back on the phone.
The first person that I spoke to said that I
was connected to broadband and the fault must be at my end. To humour the
employee I carried out various checks but of course nothing was wrong at my end.
I was then put through to a second person who
told me that I did not have broadband and would I like it installed !
I told him that the previous person had told me
it was connected and working and that the fault was at my end. The BT
employee said he would need to consult with somebody and I was put on hold and
then cut off.
I rang again and after speaking to two more
people I was told my broadband would be re-connected within 5 days !
It would take longer but luckily the equipment
had not been removed from the exchange !
Finally I was re-connected on Wednesday 22nd
February at 8.00 pm.
I have now had a second line installed with Sky
broadband in case I am cut off again.
Thank goodness this did not happen at the end
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