HMRC tax summaries: do you want to know how your money is spent?
If you are within the self assessment system or received a Notice of Coding from HM Revenue & Customs for the 2013-14 tax year, you will also receive a summary detailing how your tax was spent by the Government.
Over 24 million taxpayers will receive an annual summary from HMRC by the end of the year, as part of a move to encourage transparency of the tax system. The statements will outline the amount you have paid in income tax and National Insurance during 2013-14. An explanation of the calculation will also be included, although it is crucial to also check the amount yourself. Your annual Notice of Coding should be carefully checked to ensure that you are given the correct tax code, as this dictates how much tax you pay during the year. The statement will go on to explain how the tax and NIC collected was spent by the Chancellor of the Exchequer.
The millions of self assessment taxpayers who are registered for the online service, and complete online tax returns, will be able to view their summaries online. The remaining 16 million taxpayers who are within the Pay As You Earn system will receive their tax summaries through the post, but only if they received a 2013-14 Notice of Coding.
According to George Osborne, the UK Chancellor, the tax summaries will make the system clearer by detailing how the money of taxpayers is spent.
How to check your Notice of Coding
Find your tax code for this year by looking at the 2014-15 coding notice. If you didn’t receive a Notice of Coding, it may be on your payslip or a P45 issued during the year. If you are registered for the online system, don’t forget, it will be available for viewing on the web, if that’s easier.
Don’t presume that HMRC has got your tax code right first time! It may not have used the latest information, which could result in an incorrect tax code being issued. Check all the details carefully and contact HMRC if anything is wrong.
What’s more, make sure that the employer shown on the Notice of Coding is current, and check the letter on the tax code, as each letter dictates the personal allowance you receive.
Add up the figures shown on the coding notice. If anything doesn’t add up or seems inaccurate, get in touch with the experts here at The Accountancy Partnership.
What do you think? Do you want to know how your hard earned money is spent by the Government? Let us know in the comments box below!
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