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Tax doesn’t have to be taxing, but the taxman can be

Corresponding with HM Revenue and Customs is never the most exciting of experiences, no matter what Adam Hart-Davis or Moira Stuart may tell you on the adverts. So when the infamous pale-brown envelope landed on my doorstep this week, my expectations were low.

That was until I opened it to be told “according to our records you are in between jobs.” Which is funny because I am typing this blog from a computer at the Financial Adviser newsdesk with a payslip glimmering at me full of income tax and national insurance deductions being paid straight to that same taxman’s pockets.

It turns out I am not alone. Thousands, possibly millions of people have been sent the wrong tax codes ahead of the April 2010-2011 tax year in what HMRC blames on its new computer system. Is this the same system it wants everyone to use to file online from next year?

HMRC has apologised for the error and insists there is plenty of time to sort this out. Which can only be a good thing as it took me three days of listening to classical music to finally speak to someone.

Monday: Nice recorded voice lady tells me to call back about tax codes after 31 January.

Tuesday: Nice recorded voice lady tells me all advisers are busy and hangs up.

Wednesday: Spend 7 minutes on hold, on an 0845 line, until I speak to a nice man who rectifies the situation and tells me I had been registered in secondary employment.

While it was relatively easy to sort out and I will soon receive a shiny new and correct tax code, surely it shouldn’t have been up to me to phone a premium number to resolve.

I’m sure the taxman would have been calling if I had decided to go with the code and stay in “in-between jobs” to benefit from a lower tax rate.

Have you been affected too?

I had a similar thing with my NI. I had been with the same company for nearly ten years, however they had no record of any NI for two of the middle years and wondered if I wanted to make up the shortfall. I sent copies of my P60s and this was quickly resolved, but why those years had been lost, who knows

Hi

I was suppose to so my income £35000 but by mistake my C.A. filled £21000

Can I show it now? It will be very nice if some one can advice on it.

Thanks