You may have already heard but the HMRC online tax calculator has encountered a glitch which means certain individuals who have submitted their self-assessment tax return online have been paying too much tax. Now this is not a blog written to rant and rave about how bad the HMRC online system is (that’s another story! haha), this will stick to the facts and simply outline who is affected by this glitch and how to fix the problem.
Who has been affected?
There are 2 groups of taxpayers who will be paying too much tax if they submitted their tax return online. These two groups are:
1) Individuals who earn less than £16,000 per year and exceed the Personal Savings Allowance (£1,000 per year basic rate, £500 per year higher rate)
2) Individuals who earn a taxable income between £27,000 – £32,000 and receive income from Dividends which takes them over the additional rate tax threshold of £150,000
If you’re unsure if either of these apply to you then the best option is to contact your Accountant directly and get them to check your status, or if you do not have an Accountant then it’s always worth contacting the HMRC directly and double checking with them if this applies to you.
How to fix it
If you’re certain that you fall within one of these two groups then the HMRC have stated that you simply need to re-submit your tax return via the old-fashioned paper method. This will force a re-calculation of your tax which will bypass the online tax calculator and give you a definitive amount of tax owed. As long as the system is proved incorrect in your case you’ll be refunded for any overpaid tax.