HMRC have admitted that their online software is not carrying out the correct calculations for certain taxpayers.
Some individuals with 2016/17 employment income, pensions and rental income of less than £16k but who also have untaxed interest for that year of more than £1000 but are basic rate taxpayers, or £500 if they are higher rate tax payers, are likely to be overcharged.
In addition others who have earnings of between £27k and £32k in 2016/17 but who also received dividend income sufficient to take their total income for the year to over £150k may also be charged too much tax by HMRC's online calculator. HMRC have acknowledged the issue and now ask individuals that fall into the above categories to file paper returns. Please note that alongside the additional hassle of filling in a paper tax return, they must also be filed before 31.10.2017 whereas an electronic Return doesn’t need to be filed until 31.01.2018.
PayStream's personal tax clients won't face this problem because we use independent software to create and file their Tax Returns. If you've fallen into the above categories PayStream's Tax Team can help, we can offer expert advice as you need it, for as long as you need it. For more information, please contact our Tax Team on 0800 197 6516 (option 3) or email us email@example.com