tax code

[hgllgh]

hmrc have sent me an ammended tax code applicable to both this financial year as well as the coming financial year. The change is based on my business expenses which I declared on my p11d so why would they be using this to ammend my tax code?

My accountant thinks it's an error as p11d expenses just reduce the net amount, but either hmrc uses expenses to calc tax codes or they don't????

[basshead]

Ring them up, they c0cked up in a similar way with mine.

[Nixon Williams]

HMRC will amend a tax code for benefits declared on the P11d.

Usually this would cover items such as cars, vans, medical insurance etc. However any other expenses may be included if you have not made a declaration that they were business expenses.

This declaration is usually done via the tax return. If you have done this, contact HMRC they may have missed it and will adjust the code for you.

Another trick HMRC do is reduce your tax code to account for "savings" income, ie dividends - the aim of this is to get some of your cash upfront. You can ask HMRC to remove this adjustment and you will then pay the tax by 31st January after the end of the tax year.

I hope this helps.

Alan

[Gonzo]

Every year I have to send mine to the accountant to sort out.

This year was a good one, they worked out my tax code to be round about 10000L because of personal pension contributions that I made last year.

Last year I received PAYE coding notices from two different tax offices.

[moorfield]

Just got mine yesterday. 74L.

[xoggoth]

I had the same and rang them up. It seems they have recently taken to ammending tax codes for current year based on P11D, which is pretty idiotic as any no longer receiving some benefits will have already written to say they no longer apply to this year, then they put them back again based on last year.

[moorfield]

To be honest I can't be bothered to sort it out. Cashflow is not a problem while I am working and I'm assuming it will all even out anyway after next year's self assessment.

Edit: This happened after I filed my self assessment before the 30 Sep deadline and ticked the "collect via tax code" option. I think next year I'll just wait until 31 Jan and start paying tax on account.

[Archangel]

Just got mine yesterday. 74L.

Lucky Git! Mine is K476.

[hgllgh]

I had the same and rang them up. It seems they have recently taken to ammending tax codes for current year based on P11D, which is pretty idiotic as any no longer receiving some benefits will have already written to say they no longer apply to this year, then they put them back again based on last year.

This seems to be the case.
Just spoken to HMRC and they insist that the expenses are included in the tax code due to being claimed as in the previous tax year.
I explained that this assumes that expenses are the same every year and he agreed but insisted that expenses must be included in the tax code.
This seems ridiculous … what am I meant to claim in my P11D for this tax year? X amount minus job expenses already taken in the tax code? (My business expenses are taken from gross before tax.)

[spoons]

Mine was changed, but the accountants sorted it out.

From what I understand HMRC incorrectly processed around 200,000 P11d's this year??