Business News
Update on PAYE ‘errors’
The Taxman’s new computer has been working overtime reconciling the PAYE records for millions of people for the 2008/2009 and 2009/2010 tax years.
With around 4.7 million of these reconciliations flagging up cases of overpayment of tax, a P800 form is automatically despatched to the taxpayer in question to show how the error has been made.
However, from examining the first round of P800 forms that have been sent out, we’ve noticed a number of recurring problems with the Taxman’s figures, which could mean you paying more:
• Incorrect state pension – check this against your notice from the Pensions Service.
• Estimated amounts of interest or rental income – check your bank statements.
• No extension of the basic rate limit for pension contributions or gift aid payments – check whether you did make pension contributions or gift aided donations.
• Missing married couples allowance – only applies if you are already aged over 75.
If you don’t agree with the figures shown on your P800, you should contact the Taxman on the telephone number shown on the form, or get us to handle it for you.
If you agree with the Taxman’s figures, and you still need to pay a bit more, we have some good news!
The maximum amount which will be ‘written off’ by the Taxman is now £300 per tax year, not £300 for the two years taken together as previously announced, which means double the money!
