Incorrect 2017/18 P800 and PA302 calculations? The Tax Faculty needs your feedback

HMRC has begun the PAYE reconciliations for 2017/18. Where there is an under or overpayment, taxpayers are being issued with either a P800 tax calculation or a PA302 simple assessment. 

As we said in our recent news item – First reports of issues with P800 and PA302 calculations for 2017/18 – the Tax Faculty is getting reports of problems. These include: 

  • HMRC using estimated figures which are out of date,
  • P800 calculations or PA302 simple assessments being issued to taxpayers in self assessment (SA), and
  • data from employers’ PAYE RTI submissions not feeding through correctly to HMRC’s employee records. 

The news item explains why these issues are occurring. 

We are keen to hear from members. Have you received inaccurate or duplicated PAYE tax calculations (P800s and PA302s) for your clients? Please post a comment below.

You can also use HMRC's online agent forum to report problems - see our news item Make the most of HMRC's agent forum.

  • I have not yet received a P800 for a particular client, but she asked me to review her tax position and I calculated she had underpaid tax due to the amount of bank interest received exceeding the amount adjusted for in her tax code.  I phoned HMRC this afternoon to provide the actual figure for total interest received in 2017/18 and was advised I would need to provide details of the amounts of interest received on each bank account separately.  I was informed that the information required is the name of each bank, the sort code and account number of each account and the dates each account started.  I advised HMRC staff that I do not have a record of all this information for all my client's accounts and we are being discouraged from retaining such information on our systems, due to GDPR.  The response was that no figures could be entered unless I could provide all the information and either I would need to provide it or my client would.  My client pays for us to review her tax position and liaise with HMRC because she does not want to do this herself.  I can hardly believe this is now HMRC policy.  It will waste such a lot of clients', agents' and HMRC's staff time!  I would be grateful if the ICAEW and other institutes could raise this issue with HMRC ASAP.

  • I've just posted on the Agent Forum, but I have a case:

    Client had PAYE income and self employment income (above £1000 trading allowance). 

    I submitted her SATR 17/18 in May 2018 and can see the tax due on her Gov GW account when I log in. She had tax to pay because of the self employed income.

    The P800 received over the weekend only shows the employment income and advises the client that she's due a refund. She's asked for the repayment to be made already, so I've had to advise her not to spend it as I think it's incorrect. 

    There's nothing to show any self employed income on the P800 at all. How is that possible, given that there's a SATR on the system showing SE income? 

  • Client has been filing SA returns for many years covering self employment and property letting income.  25th July 2018 P800 issued proposing to refund £ 3,757.67 to client from tax deducted on encashment of pension.  Calculation showed lump sum and personal allowances only.  SA return has not been filed yet with self employment and property lettings.  We contacted HMRC by phone and they stopped the cheque.  Why deduct tax at 32% and then refund it ?  Our client say he is confused and so are we !  

  • PAYE coding adjustments for in year expected underpayments have been adjusted for as if they are prior year underpayments - leading to incorrect SA302s being issued to SA clients 
    This has happened to three of my clients.  When I called HMRC before submitting the second one to see if it could be removed before submission I was told it was a known issue and that I would have to submit the return ignoring it, then HMRC would send the client a revised SA302 with an incorrect calculation including it, then I could ring again to get it removed and then a correct SA302 would be issued with the figures I had submitted in the first place.
    When I last did that the poor HMRC operative sounded exasperated as she had already done quite a few like that during the week!  What a waste of everyone's time.

    Also Marriage Allowance Claims that had previously been brought forward have now started to be removed - again leading to incorrect SA302s being issued, followed by the spouse having to go through the procedure again to give the MA, followed by a second SA302 with the originally submitted figures on.