Tax Code Mysteries

[XFool]

Today I received a letter showing my new tax code. [ ]

Every year the figure for "Less Dividend Tax" changes. Fair enough. But the figures for:

"Less Other Unearned Income" (In my case for dividends from offshore ITs)
"Less Untaxed Interest"

Seem to remain the same, from year to year. Only changing every several years, by some arcane formula.

Why do these figures not also change annually, based on figures submitted in my last SA?

(Admittedly, this year my SA was submitted quite late in the tax year)

[XFool]

I have just had a thought. With this is mind, if true: https://www.lemonfool.co.uk/viewtopic.p ... 37#p567137

Could it be a sort of 'deliberate mistake', for purposes of assessing the accuracy or honesty of SA taxpayers?

(I don't usually go for conspiracy theories)

[DrFfybes]

Today I received a letter showing my new tax code. [ ]

Just the one?

I'm on my third this calendar year, and I'm unemployed. It changed when I started to draw a pension late Jan so I paid emergency tax, and apparently it changed again sometime last month as the last pension payment was not taxed and had a different code on the payslip.

So now I'm wondering whether I can be bothered doing SA for the £15 or so I was taxed in Jan - I suspect it will be less than minimum wage by the time I've collated everything.

[XFool]

I'm on my third this calendar year, and I'm unemployed.

As HMRC systems are now at least semi real-time, any new information into the system can produce an updated Tax Code notice. It has happened to me in the past.

[DrFfybes]

I'm on my third this calendar year, and I'm unemployed.

As HMRC systems are now at least semi real-time, any new information into the system can produce an updated Tax Code notice. It has happened to me in the past.

Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will last

[staffordian]

As HMRC systems are now at least semi real-time, any new information into the system can produce an updated Tax Code notice. It has happened to me in the past.

Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will last

I did that last year and it worked as hoped. The previous year I had a small amount of (taxable) Carer's Allowance, up to the date my State Pension kicked in.

But the clever HMRC people assumed I'd receive similar the following year and loaded my tax code accordingly.

A quick visit to the HMRC we site allowed me to correct their misguided assumptions and a new, correct code was in place with my pension provider before the April payment was due to me.

[DrFfybes]

Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will last

I did that last year and it worked as hoped. The previous year I had a small amount of (taxable) Carer's Allowance, up to the date my State Pension kicked in.

But the clever HMRC people assumed I'd receive similar the following year and loaded my tax code accordingly.

A quick visit to the HMRC we site allowed me to correct their misguided assumptions and a new, correct code was in place with my pension provider before the April payment was due to me.

Well yesterday I got a letter from HMRC, presumably triggered by my updating a figure online in my online account.

They've sent me a Unique Taxpayer's Reference no and asked me to register for Self Assessment online in preparation for filling in SA for the current tax year.

Ho hum.

Paul

[pje16]

They base interest on what you received in the prior year
I know as they did it to me last year, and then I called, and she corrected it over the phone as I knew what the correct figures were