A battle begins...
When permie upto last tax year, HMRC quite happily collected tax due thru PAYE. When I was made redundant in May getting a large payment in month 2 with the tax code I was on at the time meant that a lot of tax was deducted at higher rate, easily recovering the full amount of tax due and more.
When benched in June-Aug, I tried to get my tax code changed as the assumption I would earn over £100K was completely wrong, they refused saying they could not change my tax code until I was back on PAYE. I started a contract gig in Aug and my accountant said there was no need to start PAYE as I had paid enough tax through PAYE already in the tax year, so have taken dividends only since and keeping the higher rate liability within the company.
By Sep HMRC decided to send me a tax refund, I was puzzled why, so I called them up and if I recall correctly it was a refund due as they believed they had over calculated the amount due when they set my tax code.
End October I submitted my self assessment which slightly increased the tax amount owing be still easily already collected within the tax paid on redundancy PAYE in May. By this time I was benched again.
By Dec I had a statement from HMRC confirming how much tax I owed and saying it was being collected through PAYE so there was nothing to pay on account.
In Jan I had a very large negative K tax code sent to me - they were still wrongly assuming I would earn more than £100K and had added child benefit reclaim as well - some of which I could dispute due to divorce and moving out of the family home in July.
Clearly by last week Hector must have got severely narked as I was issued with a demand for immediate payment of the full amount due with interest being added daily.
I did a calculation with what I know to be the full year's income including my redundancy pay and salary in permie job April/May - Hector owes me thousand's back though most of this will offset the HRT liability I have built up through dividends taken from Ltd Co (which surely is not payable until I have completed 13-14 Self Assessment).
So I tried to call Hector this morning - PAYE records system is down today they could not help me
I'm really not bothered about having to pay what I owe, what narks me is having told me in a statement in Dec that nothing is due immediately they can change their mind at will and demand immediate payment without taking into account an individual's circumstances - what a way to treat someone who has been benched for 6 months and already overtaxed on PAYE and is suffering cashflow problems having to wait 30 days for payment of first invoice (after being boomed!)
When permie upto last tax year, HMRC quite happily collected tax due thru PAYE. When I was made redundant in May getting a large payment in month 2 with the tax code I was on at the time meant that a lot of tax was deducted at higher rate, easily recovering the full amount of tax due and more.
When benched in June-Aug, I tried to get my tax code changed as the assumption I would earn over £100K was completely wrong, they refused saying they could not change my tax code until I was back on PAYE. I started a contract gig in Aug and my accountant said there was no need to start PAYE as I had paid enough tax through PAYE already in the tax year, so have taken dividends only since and keeping the higher rate liability within the company.
By Sep HMRC decided to send me a tax refund, I was puzzled why, so I called them up and if I recall correctly it was a refund due as they believed they had over calculated the amount due when they set my tax code.
End October I submitted my self assessment which slightly increased the tax amount owing be still easily already collected within the tax paid on redundancy PAYE in May. By this time I was benched again.
By Dec I had a statement from HMRC confirming how much tax I owed and saying it was being collected through PAYE so there was nothing to pay on account.
In Jan I had a very large negative K tax code sent to me - they were still wrongly assuming I would earn more than £100K and had added child benefit reclaim as well - some of which I could dispute due to divorce and moving out of the family home in July.
Clearly by last week Hector must have got severely narked as I was issued with a demand for immediate payment of the full amount due with interest being added daily.
I did a calculation with what I know to be the full year's income including my redundancy pay and salary in permie job April/May - Hector owes me thousand's back though most of this will offset the HRT liability I have built up through dividends taken from Ltd Co (which surely is not payable until I have completed 13-14 Self Assessment).
So I tried to call Hector this morning - PAYE records system is down today they could not help me
I'm really not bothered about having to pay what I owe, what narks me is having told me in a statement in Dec that nothing is due immediately they can change their mind at will and demand immediate payment without taking into account an individual's circumstances - what a way to treat someone who has been benched for 6 months and already overtaxed on PAYE and is suffering cashflow problems having to wait 30 days for payment of first invoice (after being boomed!)
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