TAX CODINGS 2006/07 - A WARNING

[Dusty1]

Keep a careful eye on your new 2006/07 tax codings. If you also have Self Assessment tax liabilities, the Revenue are trying to collect these liabilities up to two years in advance of their normal due date by adjusting PAYE codings.

If you don't want them to do this, all you have to do is call your tax office and ask for the adjustment to be cancelled.

 

[CliveV]

Good Advice Dusty - I concur

I would also point out that from next fiscal year the Revenue are going to ask for an advanced payment based upon "work in progress".

In other words, they are trying to catch up with those people that they think deliberately role over certain payments into the next tax year.

I do not know how they intend to do it but it seems that where this applies if you are half way thro' a contract that pays you at the end of the contract and the payment date is in the next tax year, the Revenue will want you to pay a proportion of the tax in the current tax year, even if you have as yet not been paid a penny!