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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4805
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I am filling in section 4 "underpaid tax included in PAYE coding

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I am filling in section 4 "underpaid tax included in PAYE coding (p1 of 2). It is asking tax that appears on my PAYE coding notice 2013-14. My tax notice 2013-14 reads Personal allowance £9440, medical insurance -£1174, Underpayment restriction -£3636. I have therefore entered £3636 on p1, is this correct? p2 then asks underpaid tax -14 to be included in my 2014-15 PAYE coding notice. My 2014-15 coding notice reads personal allowance £10,000, medical insurance £-1174, underpayment restriction £-3384. I have entered £3384 on p2, is this correct? The next page that appears on my self assessment is "other debts". It asks debt included in my tax code -14. I am not sure what to enter. Do I re-re-enter the £3636 figure or do I enter £0? Thank you
, I'm Keith and happy to help you with your question.
In my opinion you enter the 3636 figure.
I do hope I have helped you with your conundrum.
Customer: replied 3 years ago.

Keith. But is it right that I enter the £3636 in p1 & £3384 in p2? I can't see that you have answered this question? Thx

Sorry, I do accept that I slightly misled you. It's 3636 in p1 and 3384 in p2.
Deep apologies.
Customer: replied 3 years ago.

OK. So I enter £3636 on p1, £3384 on p2 and then on the next page titled "other debts" I enter £3636 again. Is that right? Thx

Yes, indeed.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4805
bigduckontax and other Tax Specialists are ready to help you
Thank you support.

I have a different answer.

Look at the notes on the back of your tax codings. They will tell you how much the tax underpayments are that you put into each of the boxes, if at all. You may find that the 2014/15 coding restriction has nothing to do with 2013/14 in which case you should ignore it. It may be that the underpayment restriction in your 2014/15 tax code is to cover an underpayment /13 in which case you would deal with that in your 2015 tax return.

If you cannot locate the tax coding notes, call the tax office and ask them to tell you what the correct figures are 7 and 8 of the SA110 pages. You don't put £3,636 or £3,384 in any box. They are the restrictions of allowances that are necessary to collect the underpaid tax. So, if you owed £500 and you were a 20% taxpayer, the restriction would be £2,500 (£2,500 x 20% =£500).

I'm afraid that if you have submitted your return, you are likely to get an excessive tax demand before HMRC spot the mistake and you should either amend your return or call the tax office when you can see that the return has been processed.

The article here explains how the allowance restriction works.

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.

I am not happy about this. I completed my tax return on the answers given on the 17th Jan by the other "expert" & 2 days later, I get completely different answers which would indicate that I have completed by tax return incorrectly. I asked this question originally to avoid calling the Tax Office which is a real bind at this time of the year but now have no choice but to do so. I will see if I can get hold of them and then I am going to review where I go from here. If you are right, thne I have paid someone else advise which is not good at all.

I have no control over other experts who work on the site. We are all work independently of one another as independent contractors. I will not get paid answer as you have already paid one and you don't have to pay twice. I wanted to make sure you got an answer based on my 35 years experience in tax work including dealing with tax underpayments in tax codes and how they relate to tax returns.

Clearly, you are not happy. You are quite within your rights to take the matter up with just answer if you wish as there really is nothing that I can do beyond giving you my answer.

I have posted this as an "Info Request" to avoid a rating request being sent to you by the automated system. You don't need to provide me with any more information but I will be happy to help you if you still need any it after calling the tax office as you are at liberty to questions free of charge on the same topic as your original question.

Customer: replied 3 years ago.

Dear *****tax. My frustration was not aimed at you personally (so sorry if you took it that way) but at the situation I am now in. I am unable to get hold of HMRC. If I wait to see if they send me a tax bill or change my 2014-15 paye coding, will I be bale to call them up at that point and sort it out? Thx

I understand. No offence taken.

The best time to get hold of the tax office is at 8am when they start. Given that you have put £3,636 in one box and £3,384 in the other box, the error won't be that great hopefully as the figures are only £252 apart. It is, however, still an error which needs to be rectified.

If you login to the HMRC site now, you should see the effect your entries have had on your tax liability. You should also see an option to amend the return but you need the tax figures from the back of your tax codes or from the tax office. If you get through ask them to make the amendment .

Don't click or rate as you have already paid.