Your Money or Your Life

You may well be aware that at the moment letters from HMRC are being sent out to individuals who have paid too much or too little tax through the PAYE system. As far as I can ascertain this is because the individuals were given the wrong tax code, whatever the reason, it seems to be universally agreed that the root cause is due to HMRC.
Imagine my surprise then when I heard that HMRC are proposing that we move to a system where your employer pays your gross salary to them, they make the tax deductions and then put the net amount in your bank account. The details are in this consultation document. What made me laugh when I read it, was the first line of paragraph 5.13 which read

“HMRC would be responsible for ensuring deductions were correct”.

The Tax Man Cometh

I am in the fortunate position of being a landlord. We have just changed the agents that look after the house. As well as signing a contract with the agents they required a lot of extra details. Information like who supplies the gas and electric, which telephone company is used, what is the number of the gas safety certificate was not a surprise. What was a surprise was the requirement that we supply tax reference and national insurance numbers. When we questioned it, we were told that HMRC demands this information from the agents. We can only presume that this is so that they can confirm independently that what I state on my tax return is correct. If they want to go to that trouble they can do the bloomin' tax return for me. Still, it certainly lends weight to this report.

You don't need to worry though because you are not a landlord. Well, perhaps you do according to this.