Jaycey

African Refugee
My Bolshie Husband
OMG poor Maisie - I reckon you should start your own charity shop and earn a few $$s (but first check to see if charity shops are exempt from income tax).

Otherwise just give them the bird & book a flight to the Caymens.
 
My Bolshie Husband
My husband has had fun with HMRC. Since we own buy to let properties he always has to do a self assessment to cover the income earned outside of his main job. For years he has done this & an invoice is generated to be paid by the end of January. Suddenly without any warning, when he completed last year's return, they not only wanted the money due for that year, but also 50% of what he was expected to receive the following year.
I could understand it if he had ever been late paying, but he has not.
Luckily we have a "Save for Tax" account, which had sufficient funds in it, but other people must surely of struggled to meet the unexpected demand.
 

juco

Member
My Bolshie Husband
Last year my wife got a demand for thousands, fortunately she knows the tax system well, It turned out the demand would have required her to have a couple of million in the bank (if only), checking back it appeared to originate in China. I dont know all the detail as my wife dealt with it, the conclusion was that HRMC had mixed up some accounts, however they wanted my wife to get on to various banks for some kind of proof, whatever wife said they eventually done the legwork themselves and adjusted the tax figure.
I do wonder if at times they try it on.
 

Maisie

Member
My Bolshie Husband
Yes I agree. It is probably one of the things that most people dread - a demand from the tax office. When I got the demand, I worked it back from the figures they were showing, confirmed by the P60s. Unfortunately, I agree their figures. After lengthy conversations with them, I find it iniquitous that they can't see what a financial problem this has made for me.

The most annoying part of this is that they did not tell me that given what they were deducting, it would leave a shortfall at the end of the tax year. It seems so wrong that they didn't tell me. As far as they are concerned, they have made the demand and want the money. No apologies attached to why this has occurred. I did ask the bloke why this situation was allowed to happen, but he didn't have an answer. I suppose, as a pensioner, I am supposed to have a bottomless pocket from which I can just pay them. I would like to take them to task officially for creating this situation, but HMRC are a law unto themselves, and sod the rest of us!

When Dave died, I didn't expect HMRC to screw up the deductions made for tax purposes. I am sure we all know that they can make mistakes, but as far as they are concerned - they haven't made a mistake. But I regard this as a huge mistake! They arrive at an underpayment due because of their lack of correct applications and just expect it to be paid. Someone should have looked at this and told me what was happening.

Still, this situation now exists and I have just got to sort it out. This does mean that I will not know properly how much money I have at any given time. Mine - or HMRC's? This got messy in the beginning, but I believed them when they said it was all sorted. This is very unsettling. I feel as though I am constantly on the back foot.

I have now started getting chest pains which extend to my lower jaw and left arm. Looking up the actual symptoms, I think I have started suffering from angina. My GP practice have given me a spray to use under my tongue when this pain occurs, but also have urgently referred me to the cardiac unit. Whether this is due to stress or not, I don't know. But it seems likely. So, whilst the hospital is trying to get to the bottom of one problem, another has now appeared. I can see me being admitted to hospital very soon.

Just what I need.

Maisie
 

429nufc

Member
My Bolshie Husband
Last year my wife got a demand for thousands, fortunately she knows the tax system well, It turned out the demand would have required her to have a couple of million in the bank (if only), checking back it appeared to originate in China. I dont know all the detail as my wife dealt with it, the conclusion was that HRMC had mixed up some accounts, however they wanted my wife to get on to various banks for some kind of proof, whatever wife said they eventually done the legwork themselves and adjusted the tax figure.
I do wonder if at times they try it on.
Happens all the time. One of my clients was paid for 1 month in 2016 by a company that used a notorious tax evasion scheme. He's having to get bank statements back to 2016 to prove the only income he had was the amount he declared
There are no local tax officers anymore , just people looking at screens
 

429nufc

Member
My Bolshie Husband
The "In Advance " payment HMRC are demanding is standard for anyone paying more that £1,000 SA Tax or whose SA tax is more than 20% total tax . If you check you'll find another payment is due on 31.07.2021
There could be other reasons you've woken them up but the above a the usual
 

Maisie

Member
My Bolshie Husband
I do not understand where 25% comes from. I am taking the net figure (which represents gross minus 20%), dividing it by 80 and multiplying the result by 100 to get the gross. Although I have just tried this (+25%) with a hypothetical figure. It does in fact produce the same result as using my formula. Aren't figures funny?

So far as I am aware, I am not paying SA tax. HMRC have instructed the pension companies to deduct tax at source. In the case of one company 50%, and for the other three, BR. Rather like PAYE. If I can instruct them to take the 50% from a larger gross payment, the underpayment should be smaller at the end of any fiscal year.

I do not understand 31.07.2021. This was two months ago. For 2020/2021, HMRC have given me an underpaid figure. Which, unfortunately, I agree. This is not in advance, but in retrospect. I have now calculated the tax which will be due for 2021/2022 based on the current gross payment (arrived at by dividing each payment by 80 and multiplying by 100) to me from each company. This has produced another underpaid figure. After I have paid them what is owing for 2020/2021, I want to pay them in advance for the shortage which will be due for 2021/2022. What I hope is that when I call them in March 2022, I can say that I know there will be tax still owing for 2021/2022 and I want to make payments against this figure (yet to be calculated by them). In March 2022, this will give me longer to pay them the underpayment. Being an upright citizen!

What I do not understand, however, is why this situation did not arise with Dave. He received a payment from each of the three companies, minus tax at source. An underpayment did not arise. This is strange when you consider that the pension payments he was receiving were a lot more than they are paying me. I am getting roughly 50% of the pension figure each of these companies were paying Dave. Perhaps, because of these higher figures, they were able to apply BR to two of the companies, and collect the rest from the remaining company. I suppose I could check this by getting out the P60s that Dave got. However, that is a lot of work, which will not result in anything useful.

Maisie
 

Mushroom

Member
Top Poster Of Month
My Bolshie Husband
I used to get hit with the demand for payment of tax in advance for the 'perceived' profit anticipated for the following year based on my previous tax submissions. Then, I started to take a more part-time attitude as I started to point to retirement, boosted expenses up a bit and after a return that was lower they dropped the advance payment idea.
My only suggestion Maisie is now that they have informed you of this reoccuring payment and you have a rough figure to work on, factor it into your accounting and ringfence it so that when the demand arrives it is no longer a shock.
For those who can remember MIRAS, I once had a miscalculation put into my pay when I was employed and I didn't realise for about 18 months ( I aren't an accountant). When I did realise, I went to an accountant and it was in the days when an accountant could actually speak to someone at what was Inland Revenue. He worked his stuff and when the mistake was accepted as partially theirs and partially my pay section, they removed part of the sum owed, then let me pay the remainder back over about 3 years through my tax code with no penalties or interest.
Unfortunately that was in the early 80's and those days have gone.
 

Bramidan

Member
My Bolshie Husband
Maisie, look on the bright side, you now know that there will be a demand and the rough figure. The good news, it's better to have it in your account rather than HMRC!
Hang on to it until the last possible moment. Pity interest rates are so low because you could have invested "their" money.
 

Maisie

Member
My Bolshie Husband
I hadn't looked at it like that! But, of course you are right.

I was going to pay this at the end of October, November, December and the balance in January. However, I will not pay anything now until the last minute! Stuff them!

But I will still have to ring them in March to get the tax liability for 2022/2023 shifted to the company which hopefully can deduct the 50%. The bloke agreed with me that it would make more sense to take the tax from a different company's payments. I wonder what they will come up with then to stop this happening?

Maisie
 

Maisie

Member
My Bolshie Husband
I suppose because I just spoke with HMRC, they have sent me a totally incorrect P2 for 2021/2022. According to this they are immediately changing my K code to"take account of tax underpaid". From which tax year? They don't say - useful! This is all very well, but they are applying the K code to the wrong company! So how come I was told nothing could be done now at this late stage in the fiscal year? Even more reason not to pay them anything now!

I do not intend to contact them again. But under the circumstances, I might ring them in February 2022 instead of March. This will give them time to issue more incorrect P2s. Interestingly, they can produce an altered P2 for the current tax year, but could not make any alterations to this whilst I was speaking to them! They said it was too late.

Left and right hand not speaking to each other?

Maisie
 

Maisie

Member
My Bolshie Husband
I decided to access my online income tax account with gov.uk. to see what is going on. Problems there also. I opened this account many years ago to file my annual tax return. I can't access the account because I cannot provide them with two out of three items they need. That is a valid passport (ran out September 2014) or an Irish driving licence! I can give them only one of the three options, that is when I first opened a credit card account. So only one out of three. My passport must have been valid when I initially opened this account. What's wrong with a UK driving licence? Seems to work in favour of the Irish!

I had a Webchat with them. It seems that if I cannot give them two out of the three, I can't access my account, or even open a new one! The Webchat said to try opening a Verify account, as they require different options. Tried this, and after the initial pages, they come back with the same three bloody options.

This is all geared to do my head in!

Maisie
 

Maisie

Member
My Bolshie Husband
I have just tried the Verify site. I am fast losing the will to live!

I was doing okay until it came to the bit where they wanted me to download an app to my mobile. My mobile is not a smartphone. It is a basic mobile. To make and receive calls and the odd text now and again. They say they wanted this because they could not identify my driving licence details! It seems that using a device I do not have, they wanted a photo of my licence. How can they not be able to confirm my driving licence? Okay, I have to renew it every three years, but it is valid now to October 2023. It did say that I could "borrow" a device to do this. Who from?

I am getting thwarted every way I turn. I suppose the obvious anwer is to get a new passport at a cost of £75.50 plus cost of photographs. Which will probably not be used other than for this bloody registration. Although I bet that if I did this, they would still want me to download an app to take a picture of that!

I'll bet if I was the Sultan of Brunei I would not have this trouble!

Screaming loudly now.

Maisie
 
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yalimart

The Carnwath Massive
My Bolshie Husband
I have just tried the Verify site. I am fast losing the will to live!

I was doing okay until it came to the bit where they wanted me to download an app to my mobile. My mobile is not a smartphone. It is a basic mobile. To make and receive calls and the odd text now and again. They say they wanted this because they could not identify my driving licence details! It seems that using a device I do not have, they wanted a photo of my licence. How can they not be able to confirm my driving licence? Okay, I have to renew it every three years, but it is valid now to October 2023. It did say that I could "borrow" a device to do this. Who from?

I am getting thwarted every way I turn. I suppose the obvious anwer is to get a new passport at a cost of £75.50 plus cost of photographs. Which will probably not be used other than for this bloody registraton. Although I bet that if I did this, they would still want me to download an app to take a picture of that!

I'll bet if I was the Sultan of Brunei I would not have this trouble!

Screaming loudly now.

Maisie
do you have a tablet ie ipad ? if so you could use that
 

Maisie

Member
My Bolshie Husband
Almost daily I come across the fact that I do not have a smartphone stopping me doing or registering for something.

Many times I get asked for a mobile number. Normally I don't give this because of the limited sphere in which this operates. I did have to give the number to a certain banking institution I use, as part of their login procedure requires this number. Surely, I am not the only person to eschew these 'modern' alternatives?

Quite apart from using a smartphone as a 'normal' mobile, why do companies assume that I have got one? I have been met with incredulity some times when I say that I don't have a mobile. In fact, I asked one if I had to go out and buy one of these mobiles, just to be able to use their site. The guy said that if I didn't have a smartphone, then I couldn't use their site! Ridiculous!

I have a computer and feel that this should be sufficient. Why do I have to be able to take pictures of a silly looking coded square?

Where is all this going to?

Maisie
 

Maisie

Member
My Bolshie Husband
I see announcements today about an app (not confirmed as yet) to be used by women travelling alone.

Yet another item which you cannot use unless you have a smartphone. Many of us 'oldies' do not have one of these mobiles.

Maisie
 

Maisie

Member
My Bolshie Husband
I have given up on registering on the tax site. I'll just have to wait and see what happens. Too many other things to worry about.

I had a call from a cardiac doctor on Wednesday. It seems the ECG I had on Monday has shown 'abnormalities'. He said that on it's own, this would not be worrying, given my age (??), but as I am now having chest pains (which he too thinks is angina) then more investigations are indicated. I also have CKD 3B, which I didn't know about until I read a discharge letter from the hospital, where I had been an inpatient for something else! I was asked a lot of questions, and it seems that I also have a double whammy as my father suffered many heart attacks and my mother had heart damage through rheumatic fever. Although I can't see how rheumatic fever heart damage can be hereditary. Anyway, he is now organising for me to have an echocardiogram and an angiogram. Just have to wait until I get an appointment letter. Quite scary really.

Maisie
 

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