It took HMRC 19 days to figure out that there was a problem and, three days later, they still don’t know how to deal with it. The problem is, of course, IT-related. In this case, the online self-assessment system for individuals is still merrily allowing people to opt to have underpaid tax recovered through their PAYE code rather than hand over a cheque to HMRC. This option was supposed to end on 30 December but the IT system at HMRC refuses to accept that and no-one’s figured out where in the code the off-switch for this option is.
HMRC are bullishly sticking to the view that, no matter what their own computer system says, the pay-through-PAYE option is not available unless you filed on or before 30 December. Tax representatives are taking a dim view of this: if HMRC’s own software tells you that you’re entitled to something, most people will assume that HMRC mean it. Turning around and charging them interest and possible penalties is not going to endear HMRC to these people. HMRC don’t usually worry too much about their reputation.
The pay-through-PAYE option is only available (or was only available) if you have less than £2,000 of underpaid tax, by the way.
--
Related posts:
- UK: HMRC update Intangibles manual
- HMRC: updates to CIRD manual – larger SMEs etc
- UK: HMRC R&D pilot open for business
Tags: HMRC, self assessment, software