Hi tax friends
Could anyone help me with the following situation, please ?
The “exam question” is if an underpayment of less than £3000 tax is due in 19-20 or 20-21 ?
16-17 no underpayments in previous years
17-18 I had a small paye underpayment of approx £220
18-19 I had a large underpayment (as I changed jobs and my P45 never got processed properly, so I think I got a whole tax allowance for my new job income). HMRC calculated it to be approx £3100 via a paye notice. I have submitted a return under ITSA for this year. The actual tax bill is approx £2400
19-20 HMRC is collecting the underpayment in this year
I understood where the underpayment is less than £3000 it should be collected in the next full tax year 20-21, really to spread it over the full year. HOWEVER, when I spoke to HMRC on the phone, the gentlemen checked with their paye specialist who said that it’s 19-20 because their original assessment was for more than £3000.
Which year is it, please ? I had a read of this link but I got confused :
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye12070
Personally it feels fair enough if it’s 19-20 but I wouldn’t complain if it was 20-21 !
Practically if it’s 20-21, how do I convince HMRC to get it changed ?
Thanks for any comment that can be made.
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch