Our elderly client is in receipt of a pension of approximately £7 000 gross. This is her only income under PAYE.
Her total gross income is around £38 000 per year consisting of: the pension; a state pension of £3 000; property income of £9 000; and the balance in interest and dividends with tax deducted at source. In recent years an amount has been included in her code for property income. In 2011 this amount was £5 000.
The tax deducted through PAYE was £1 100.
Her 2011 tax return has been submitted showing an underpayment of £1 800 which we asked to be collected through her 2012/13 code.
Several letters and conversations later HMRC are refusing to do this as the tax collected through her code in 2011 is less than the underpayment. I can find...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.