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Where Taxpayers and Advisers Meet

Selfassessment payment and deduction in following year

Bosch37
Posts: 3
Joined: Sat May 12, 2018 8:08 am

Selfassessment payment and deduction in following year

Postby Bosch37 » Sat May 12, 2018 8:21 am

Hi all,

just started my 2017/18 self assessment and noticed there is a sum included for tax underpaid in 2016/2017. i noticed of course that during 2017 my tax code changed but thought my company had made a mistake with the company car values etc and that's why it fluctuated. i could see though the values for car and medical insurance were fine so i thought it would all be fine and by april 2018 i'd have paid the correct total year 2017/2018 tax through payee.

i'd gotten a notice in winter from HMRC to complete a selfassessment for 2016/2017 which i did and i paid all that was owed which mostly was the benefits in kind received in 2016/2017. My obvious thinking was that my company hadn't notified HMRC and i had slept and never realized this mostly because i had forgotten to change my homeaddress on the HMRC page.

Now started my 2017/2018 and there is a sum in my tax paid during that year for tax underpaid during 2016/2017. I'm wondering now that the tax collected during the last 12 months through paye for my 2016/2017 is double collected since i settled all that was due through my selfassessment.

is there a specific way to go about it or shall i just wait for HMRC to adjust all of it when i complete my 2017/2018 self assessment and then it nets it off?

it doesn't currently say anywhere that HMRC owes me most likely because the 2017/2018 return isnt finished. but it's clear from the numbers that the underpaid collected through paye is excess.

i hope it's relatively clear what i tried to explain, if not just let me know and i can build an example with numbers!

thanks already for all your help!

Seb

robbob
Posts: 2605
Joined: Wed Aug 06, 2008 4:01 pm

Re: Selfassessment payment and deduction in following year

Postby robbob » Sat May 12, 2018 11:28 am

It is common for tax to be shifted form one year to the next if for example P11D benefits have been notified in arrears

The principle is that the adjustments should even out, when you completed your ye 5/4/2017 tax return did you include the amount of 16/17 tax collected in 17/18 code on box 8 page TC1.The amount of shifted tax should have reduced your tax liability downover.

HMRC may automatically have amended this entry even if you didn't include it so check your tax calc for ye 5/4/2017 to ensure the calc takes off the amount you need to add back on ye 5/4/2018 when you do that tax return. The entry ye 5/4/2018 being on box 7 page TC1.

Underpaid tax for 2016–17 included in your tax code
for 2017–18 – enter the amount shown as ‘estimated
underpayment for 2016–17’ from your P2, ‘PAYE
Coding Notice

Bosch37
Posts: 3
Joined: Sat May 12, 2018 8:08 am

Re: Selfassessment payment and deduction in following year

Postby Bosch37 » Sat May 12, 2018 1:46 pm

Hi Rob,

on the 2016/17 I didn't fill box 8 since at that point in time i didn't know about the 2016/17 underpaid tax being taken from the code change during 2017/18.

my 2017/18 self assessment shows automatically the collected underpaid tax from 2016/17 in box 7 so i guess i rather leave the 2017/2018 like that?

does it make sense changing box 8 in the 2016/17 by adding the amount i paid through PAYE and which shows in box 7 for the 2017/18 return?

thanks already for your help, really appreciate this!

first time i'm in this shifting years mess and mostly really my fault by trusting the PAYE system a bit too much and missing out changing my address...

Seb

robbob
Posts: 2605
Joined: Wed Aug 06, 2008 4:01 pm

Re: Selfassessment payment and deduction in following year

Postby robbob » Sat May 12, 2018 2:41 pm

does it make sense changing box 8 in the 2016/17 by adding the amount i paid through PAYE and which shows in box 7 for the 2017/18 return?
I would double check with the helpline i were you before making any change to a submitted tax return, but it looks like this is the correct entry based on what you have posted.

Bosch37
Posts: 3
Joined: Sat May 12, 2018 8:08 am

Re: Selfassessment payment and deduction in following year

Postby Bosch37 » Sat May 12, 2018 3:31 pm

thanks, i think i owe you a beer or two after this!

i'll definitely plan to call them but of course always best to organize yourself a bit before it gets a messy call. It seems until 31/01/2019 they allow amendments to a submitted return online and can't see anything about penalties if you do.

Logically speaking page TC1/Box 7 in the 2017/18 return should match the TC1/Box 8 in the 2016/17 return, correct?

Enjoy the weekend!
Seb


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