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)
Tax Code Mysteries
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- The full Lemon
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Re: Tax Code Mysteries
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)
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)
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- Lemon Quarter
- Posts: 2664
- Joined: November 6th, 2016, 10:25 pm
Re: Tax Code Mysteries
Just the one?XFool wrote:Today I received a letter showing my new tax code. [ ]
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.
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- The full Lemon
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Re: Tax Code Mysteries
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 wrote:I'm on my third this calendar year, and I'm unemployed.
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- Lemon Quarter
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Re: Tax Code Mysteries
Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will lastXFool wrote: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 wrote:I'm on my third this calendar year, and I'm unemployed.
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- Lemon Quarter
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Re: Tax Code Mysteries
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.DrFfybes wrote:Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will lastXFool wrote: 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.
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.
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- Lemon Quarter
- Posts: 2664
- Joined: November 6th, 2016, 10:25 pm
Re: Tax Code Mysteries
Well yesterday I got a letter from HMRC, presumably triggered by my updating a figure online in my online account.staffordian wrote: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.DrFfybes wrote: Oooh - interesting.I did go online and set their assumed non reported income to Zero. I wonder how long it will last
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.
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
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- Lemon Half
- Posts: 5855
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Re: Tax Code Mysteries
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
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