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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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One of my client tax code is increase by PA £10,000 Gift

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One of my client tax code is increase by
PA £10,000
Gift Aid £75
Job expenses £ 5327
Total £15402
less car benefit £ 6335
Child benefit £2257
Tax code 681L
He also have rental income, so I'm completing his self assessment return, the problem I'm having is how to adjust his tax code on the return.
Or do I don't mention the car and child benefit on the return?
Or do I have mention the gift aid and job expense on the return?


The benefits in the tax code may be correct or incorrect. When you complete a tax return, you need actual figures. In your client's case, that will be the following:

1 The P60 from his employer showing his gross pay and tax deducted for the 2014/15 tax year.

2 The 2014/15 P11D showing taxable employment benefits, a company car in your client's case, and reimbursed expenses, if any.

3 The actual amount of gift aid donations made by your client in 2014/15.

4 The actual amount of child benefit received by your client in the 2014/15 tax year.

5 The actual rental income and expenses for the 2014/15 tax year.

6 Details of any other income sources your client had in 2014/15.

The fact that there are figures in a tax code does not mean they are correct or that your client has a company car, for example. He may have given it up and not told the tax office. He may not have made any gift aid donations. You have to ask him for the information you need.

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

Customer: replied 2 years ago.

The figures are correct because I have got both his P60 and P11D



OK, then I don't see what the problem is. You complete a tax return from information provided by your client, not what is in his tax code. The code is just the tax office prediction for the coming tax year, 2014/15 in the case you have cited. Some or all of the figures in a tax code may be correct or wrong. Unless a tax code is spot on, there will be a tax underpayment or a tax overpayment at the end of the tax year which is where the tax return comes in. The tax return is the final reckoning for the tax year.

I call HMRC several times a week to have tax codes amended for clients. I complete tax returns from information provided to me by the client and some third parties, banks, stockbrokers etc.

You don't "adjust the tax code" in the tax return. All you do is declare your client's income in a tax return. If the 2015/16 (current year) tax code is incorrect, you call the tax office and have it amended.
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