Communications Foul Up

The Telegraph reports that there has been a communications foul by by HMRC wrt the tax treatment of child benefit charges for this tax year.

HMRC tax coding notices HMRC implies that the full year's worth of benefit (for this tax year) should be collected through the wages in the remaining two months of this tax year.

Employers and taxpayers are both receiving the coding changes which could lead to the full year's money being taken through just two payslips. The information given by HMRC's customer helpline also confirmed the impression of the money being taken in two months.

However, the reality is meant to be different from what has been communicated. Yesterday HMRC apologised for the poor wording of its coding notices, it now insists the intention was not to claw back all the money in such a short time.

An HMRC spokesman said:

"We will not be collecting the full child benefit charge for 2013-14 tax year before 31 January 2015 at the earliest. We apologise if the coding notice suggests otherwise and anyone who finds they are having the child benefit charge taken in a way they did not want should contact us as soon as possible."

This of course means that people should check very carefully their PAYE coding notices and their monthly income net of tax for February and March.

Those receiving PAYE Coding Notices are urged to call the tax office on 0300 200 3300.

Tax does have to be taxing.

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