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A pat on the back for HMRC

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scotia
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A pat on the back for HMRC

#306017

Postby scotia » May 6th, 2020, 9:34 am

I submitted my tax return online just before midnight on 28/4/20. Tax refund (for VCT purchases) was in my bank account yesterday (5/5/20).
I would imagine it was a fully automated process, with no requirement for human intervention, but nevertheless - quite impressive. I'm happy to give HMRC a pat on the back.

UncleEbenezer
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Re: A pat on the back for HMRC

#306024

Postby UncleEbenezer » May 6th, 2020, 9:43 am

scotia wrote:I submitted my tax return online just before midnight on 28/4/20. Tax refund (for VCT purchases) was in my bank account yesterday (5/5/20).
I would imagine it was a fully automated process, with no requirement for human intervention, but nevertheless - quite impressive. I'm happy to give HMRC a pat on the back.

My experiences have been varied. When I first submitted self-assessment they seemed to need various incantations after submission. Then one year was a true nightmare as they "investigated" and resolutely refused to suggest a timescale (days? weeks? months? In yours or my lifetime? - and yes I really did ask that last one). In recent years - touch wood - they've been efficient and painless, though I've not paid attention to the speed.

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Re: A pat on the back for HMRC

#306039

Postby james188 » May 6th, 2020, 10:41 am

I had the same experience with HMRC for this year's return - refund received in five days. It was the same story last year, so the process is now very efficient for self-assessment claims and HMRC deserves plaudits on this score. Just a cautionary note to add about claims made for refunds part way through the tax year. I made one such interim claim last October. It wasn't processed - and the refund made - until late April. In year claims are not automated.

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Re: A pat on the back for HMRC

#306091

Postby Lootman » May 6th, 2020, 1:00 pm

UncleEbenezer wrote:
scotia wrote:I submitted my tax return online just before midnight on 28/4/20. Tax refund (for VCT purchases) was in my bank account yesterday (5/5/20).
I would imagine it was a fully automated process, with no requirement for human intervention, but nevertheless - quite impressive. I'm happy to give HMRC a pat on the back.

My experiences have been varied. When I first submitted self-assessment they seemed to need various incantations after submission. Then one year was a true nightmare as they "investigated" and resolutely refused to suggest a timescale (days? weeks? months? In yours or my lifetime? - and yes I really did ask that last one). In recent years - touch wood - they've been efficient and painless, though I've not paid attention to the speed.

I take a different approach. I structure my affairs so that I always owe HMRC rather than be owed by them. So if they are incompetent then any delays work in my favour rather than theirs.

I will have my SA return ready by the end of this month. But since I will owe a few grand, I won't post it to them until the last minute. I wonder whether HMRC will push back the deadlines given that many people will struggle both to prepare the information and to find the money to pay, given the shutdown. The US IRS deferred its deadlines for 3 months for exactly this reason.

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Re: A pat on the back for HMRC

#306468

Postby XFool » May 7th, 2020, 3:27 pm

Well yes, maybe.

Yet still, year after year, my tax code seemingly changes so I pay more tax via PAYE. Why? Because, year after year my State Pension and employment pension increases - which is always adjusted on the Tax Code notification. Fair enough, but of course, in a time of decreasing interest rates and now likely decreasing dividends, my tax code worked out from my interest and investment income stays the same as it did last year. Which is the same as it did the year before last. Some figures have changed but they always seem about two years behind and some never change.

(I've asked this before) Why is this never up to date with at least last tax years figures? It's not as though HMRC don't know last tax years figures? I complete a SA form with last tax years actual figures every year. In the past, under the old HMRC systems, even if you didn't do SA it was possible to find a secure HMRC page that you could complete yourself to update the figures used to work out your annual Tax Code and get a new one sent out. I know, I used it, once. All gone now.

Originally I expected this to be handled online via the Personal Tax Account, but it isn't.

OK, I expect in the end it all comes out in the wash as most years now I get a substantial tax refund. But it's only a return of my own money that they have borrowed off me during the year, interest free!

I suppose I should look at it as an incentive to get my tax return in early, but they are likely still going to borrow off me for this year.

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Re: A pat on the back for HMRC

#306474

Postby Lootman » May 7th, 2020, 3:49 pm

XFool wrote:Well yes, maybe.

Yet still, year after year, my tax code seemingly changes so I pay more tax via PAYE. Why? Because, year after year my State Pension and employment pension increases - which is always adjusted on the Tax Code notification.

The state pension does not by itself invoke the need for a PAYE coding. It is paid without the deduction of any tax, and so no need for coding.

I cannot speak for occupational pensions as I have deferred payouts from mine. But more generally if you live off a state pension and investment income then there is no need for PAYE coding at all. One of the best parts of leaving paid employment is the freedom from the dreaded PAYE coding. You can control when tax is paid, which is why I always owe tax and am never owed a refund.

What HMRC should really do is what the US IRS does, and allow individual taxpayers to set their own coding and withholding.

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Re: A pat on the back for HMRC

#306509

Postby XFool » May 7th, 2020, 6:34 pm

@18:25 OK. Start again!...

Lootman wrote:
XFool wrote:Well yes, maybe.

Yet still, year after year, my tax code seemingly changes so I pay more tax via PAYE. Why? Because, year after year my State Pension and employment pension increases - which is always adjusted on the Tax Code notification.

What HMRC should really do is what the US IRS does, and allow individual taxpayers to set their own coding and withholding.

In effect something similar used to exist a few years ago when you could fill in an online form to tell HMRC about your sources of income and a new Tax Code would be issued (if necessary). Became unavailable to individuals - "only for authorised Tax Agents". I have no idea in what form or if it even exists anymore.

I used to think this kind of thing was going to be handled via the online Personal Tax Account. Perhaps one day it will be but, for now, HMRC Tax Coding and HMRC Self Assessment sometimes seem to operate curiously independently. I even remember some years ago when I had two different Tax Codes, a paper one and an online one.


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