My thanks to a loyal reader who dropped me the following note about apparent errors in tax calculations for NHS staff:
"Are you aware that HMRC is issuing tax calculations (and in some cases making substantial repayments) to NHS staff that the Department knows are incorrect?Can anyone provide any more details on this please?
Just spoken to a manager about a client and he admitted that HMRC has picked up the wrong end of year figures. They have picked up the "bank" figures that in many cases will be zero and over-ridden the actual pay and tax details.
HMRC totally unconcerned. They refused to write to taxpayers who may have been impacted. They could give no idea when the calculations are likely to be amended and were too uncaring, or just plain stupid, not to understand the worry and stress that could be caused to potentially thousands of NHS workers when at some point down the line they are going to be asked to repay thousands of pounds.
I asked the manager why there was nothing on HMRC's website - on the home page - flagging up that they had made a really bad mistake. The manager replied "Oh, I don't think the Department would be wanting to do that"!"
Tax does have to be taxing.
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Yep...my wife is a nurse ...she received a cheque but has not banked it...it seems that the figure the HMRC has used is the gross basic pay award and seems to have left off overtime/ bank/ unsocial hours payments.
ReplyDeleteNHS have a new payment section and it could be their fault but with HMRCs track record i won't hold my breath.....let's see how they sort this out,especially as not everyone has banked their cheques !!
Erm...under RTI, isn't it the employer's job to make sure they submit the correct figures in the correct way? When they do that, RTI works pretty well. When they don't, I suppose it's another excuse to kick HMRC.
ReplyDeleteAgreed above....seemingly the RTI figures had lower gross figures compared to the end of year P60s that were sent out to the employees.....this is borne out by the explanation for the cheque....in fact it looks like tax will be correctly paid but NHS payroll used the incorrect amounts,causing all the overpayments.
DeleteJust hope this can be sorted.
I seemingly stand corrected !! :
DeleteThe latest is that per internal NHS email..."a similar situation has been reported in a variety of employers....and that the responsibility for this lies SOLELY with the HMRC"
Have you ever heard of the Mandy Rice-Davies Defence?
DeleteEmployers' job? Ever been an employer? You're having a laugh.
ReplyDeletehttp://www.thisismoney.co.uk/money/smallbusiness/article-3005865/Chaos-real-time-payroll-submission-caused-Revenue-say-experts.html
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ReplyDeleteTax Professional