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Tax Credits, Tax Codes, and Tax Code Notification

It is possible that HMRC fail to notify your income providers with the correct tax code notification. If you are retired you may have multiple sources of taxable income and incorrect notification may lead to too much or, more frequently, too little tax being deducted.

HMRC will demand any underpayment and you may well be sent a bill even though the coding notice was incorrectly calculated or incorrectly sent.

Until recently a demand by HMRC for underpaid tax could be disputed using Extra-Statutory Concession A19, placing HMRC responsible for the incorrect deductions. This is now not necessarily possible due to a change in law effectively placing the responsibility on the individual to check coding notices are correct and received by the correct payment issuer.

If you are concerned that you may not have paid the correct amount of tax we will calculate your liability and undertake the necessary correspondence with HMRC to correct the situation. It is important that you retain all your correspondence with HMRC and all your details of income etc. such as payslips/remittances and annual P60's.
With Tax Credits the law is also changing and it is important that you submit accurate figures to HMRC in order to avoid penalties and demands for a return of any overpayment.

You have allowances and we can assist you in claiming the correct amounts. If you ignore the changes in the law you may have a big demand one day as HMRC are seeking to recover many millions of pounds of underpaid tax that may have been previously avoided by way of an A19 dispute. This area is particularly applicable to those receiving pensions (state and/or private) with other income such as self-employed / employed, dividends or rental income.

The best way is to ensure your details are correct with HMRC, you are aware of your allowances and you can identify your coding notice has been correctly calculated and applied accordingly by the appropriate organisation paying you.

We will do it all for you.