HMRC self asessment

[by'eck]

Like may I guess of state pensionable age, I am still required to submit a self asessment tax return. I registered for online submission many years ago and have found it a simple, efficient way of completing my return.

 

Having reached state pensionable age in June 2014, I was surprised to find a figure already entered in the appropriate online section of the return, apparently from data received from DWP. That makes it easy I thought, until I read the figure should not be the weekly or monthly amount. In my case it was the weekly amount although rounded up rather than the usual down to nearest pound. You have the option to dispute this figure but if so must indicate the documents received which prove it wrong. Having read the associated guidelines several times, I decided to just accept the figure, expecting some automatically applied multiplication to the number of weeks my pension had been paid during last tax year.

 

In fact it remained a single week figure in the completed tax return! I re-submitted my return using my own calculations for total state pension received, pointing out DWP's error in the box provided.

 

My point is that blind acceptance of HMRC's automatically provided figure will likely defraud them of tax revenue. Definately a case of they shooting themselves in the foot.

 

Wonder if anyone else has come across this issue?

[Athy]

Yes. I contacted them and they told me that it was a programmer's mistake. From memory, I entered the annual amount which was what they really required.

[Alan Saunders]

You may no longer be required to submit a return (HMRC https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return)but I have found that when my income increases part way through the financial year I am overcharged and submitting a return gets that money back into my bank account.

 

Many years back my employer grossly overpaid me in February and my manager kindly arranged for the excess to be deducted over six months. Unfortunately that pushed me into the next tax band for the current year.

 

I believe the correct figures to use are the actual amounts received within the year. The State Pension is particularly awkward because it is paid four weeks in arrears. e.g. My payment on 23 April included two weeks at the previous rate and two weeks at the new (~+3%) rate.

 

Alan

[ikehooperxh02]

Yes, they said that It was a programmers mistake

[by'eck]

You may no longer be required to submit a return (HMRC https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return)but I have found that when my income increases part way through the financial year I am overcharged and submitting a return gets that money back into my bank account.

 

Many years back my employer grossly overpaid me in February and my manager kindly arranged for the excess to be deducted over six months. Unfortunately that pushed me into the next tax band for the current year.

 

I believe the correct figures to use are the actual amounts received within the year. The State Pension is particularly awkward because it is paid four weeks in arrears. e.g. My payment on 23 April included two weeks at the previous rate and two weeks at the new (~+3%) rate.

 

Alan

 

I completed the online questionaire here and got the result I didn't need to file return. If I hadn't though I wouldn't have had the tax on bank interest paid net to me, refunded.

 

My partner also completed the questionaire last year with same result. Despite this she has recently been charged £100 late filing penalty, although she didn't receive return to complete! Needless to say she is appealing.

 

Back to original query, if HMRC are aware of the programming mistake, why wasn't it immediately corrected - or do they have to wait until school holidays

[OldGoat]

Remember HMRC NEVER make mistakes. It's YOUR fault for having any money. Seemingly rubbish, but that's the way it works.

You have money

You must account for tax - even if nothing's due

You can submit a return online - and not wait for a paper return.

 

Unfair - yes, but that's government.