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Tax Reconciliation
Newsletter issue - July 2015.
HMRC has started the tax reconciliation process for the majority of taxpayers who are taxed under PAYE. This may include you or your relatives, as this reconciliation also covers those in receipt of the State Retirement Pension and private pensions.
If the HMRC computer system finds there is a difference between the tax collected under PAYE and the amount due for the tax year to 5 April 2015, it will issue a form P800 which includes a tax computation. Even if we are authorised to deal with HMRC on your behalf they won't send us a copy of the P800, so please forward a copy to us if you get one.
If you have overpaid tax for 2014/15 a cheque for the tax refund should arrive about two weeks after the form P800. You don't have to request that tax refund. However, before cashing the cheque from HMRC please compare the figures shown on the computation of tax on the P800 against your form P60 or payslips for 2014/15. We can help you with that.
Where the HMRC computer system thinks you have not paid enough tax for 2014/15 you will also receive a form P800, showing the amount of tax apparently now due for payment. It is even more important to check the calculation of any underpayment of tax. Common problems include:
- State Pension is an estimated figure, not the actual amount received;
- The value of benefits (e.g. company car or health insurance) are not as reported by your employer for 2014/15;
- The business expenses you claimed to be set against your income haven't been deducted.
All of those problems arise because of the timing of returns processed by HMRC, which is not necessarily in line with the programme to issue P800 forms.
Another major issue this year is the duplication of employment income, which leads to an apparent underpayment of tax. This can happen because PAYE records submitted by employers are double counted by the HMRC computer system. If the income on your P800 looks too high you need to contact HMRC to get it corrected, or we can do that on your behalf.
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
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