PAYE and Still owe over £3000 in Tax

cmacca · 9 July 2007 at 11:55AM

My husband is PAYE and we received notice from the Inland Revenue late last year that he owed over £3000 in tax that his company have not paid or charged him at the worng tax code or something similar.

dori2o · 9 July 2007 at 4:17PM

is it a tax bill that has arisen following the submission of a tax return?

Are the details on the assessment correct?

If you are struggling to pay the demand, contact the recovery office that has issued the distraint order and ask them to arrange a time to pay plan. Advise what you can afford to pay, and if they want more, ask them for an i&e form. Unlike DCA's, the revenue will not accept a lower monthly offer for repayment without a I&E form.

cmacca · 9 July 2007 at 4:35PM

Yes the debt has arrisen from a tax return, to be honest and this makes me sound really thick, I am not sure if the info on the tax return was correct, I am normally good with figures etc, but I have never been able to get my head round PAYE etc.

Jarvisma · 9 July 2007 at 4:59PM

I would first check that the amounts owed are correct, but you need to do it quickly if it's been going on a while already.

You say he is working PAYE but then you have said the debt has arisen because of a tax return. Could you be a little clearer? Has he (or you on his behalf) submitted a self assesment return, or are you assuming it has arisen because of a return submitted on his behalf by his company?

Also what period does the debt ralate to? It seems alot to accumulate over just one year (unless he is quite a high earner) through just being on the wrong tax code. Unless he has been on a basic allowance of 522L and should have had a rather large k code because of a benefit or company car.

Most over / underpayments can be recovered by adjusting the individual's tax code in future months / years to gradually recover the debt through increased tax contributions, this would mean it being spread over a longer period. But you need to establish if it is correct and then talk to someone.

You could also actually visit your local tax office. They aren't as scary as you might think, and sometimes talking to a tax inspector face to face has alot more impact when explaining your circumstances. I can help you find where to go / who to talk to if you are interested.

cmacca · 9 July 2007 at 7:04PM

The debt relates to three years, 03-04, 04-06, 05-06, he had never filled in a self assesment tax return but for some reason they wrote to us and asked us to fill in self assesment forms for all those years, I did it on my husbands behalf and literally copied the information from the P60's we had, we then got this bill about 3 months later, he has been in the same employment, I know for a while they were using the wrong NI number for him, (I think it was an emergency one), but that was corrected after about 6 months. I am really at my wits end, we have never owed an amount like this to the tax office, I have this fear they will put him in prision or something, I know it is a bit over dramatic, but you hear such scary things. Even if they came to the house to re-posses items, we only really have a TV and a computer that would be classed as items we didn't need for day to day living, surely they can't take the sofas etc can they ?

ctm_2 · 9 July 2007 at 7:09PM

If you post the figures from his P60s for those years, and the code on the P60s, along with information on any company benefits there may have been (company car, fuel card, medical insurance etc) then we can figure out if the amounts are correct or not. Also a breakdown of how much each years calculation showed was owing.

Jarvisma · 10 July 2007 at 9:38AM

I would say there's a good chance that there may have been a mistake made somewhere and you may not owe the full amount. (Although obviously without all the details that's not for certain)

I think you should call them and ask for a complete breakdown of how this amount has been calculated and, although it sounds expensive, I think you should make an apt to go an see an accountant or a tax advisor.

Most will do an initial 1/2 hour meeting for either free or a set fee and they will be able to tell you if either a mistake has been made, or at least if the figures look likely or unlikely. I don't understand why they would have asked you to fill in self assesments for these years, but as ctm has said untill we know more details there isn't really much more we can advise - you really do need to know everything to be able to say for sure.

If you don't want to answer that's fine, but think bout how much your husband earns in a year (include everything not just salary) and does he get any benefits at all, such as those mentioned - a car, bupa, is he a member of an professional associations that his company pay for etc.

If he earns well over £40-£50k then a self assesment return would be more logical, but my inital worry is that if you have submitted returns as well as P14's and P35 information being submitted by his company there may have been either a duplication or some other anomoly which has caused this apparent 'debt'

The most important thing is to talk to HMRC - if you don;t they will assume you are just avoiding paying, but if there has been any kind of mistake they will look into it - and believe me, they DO make mistakes. I have had to sort out several!

cmacca · 10 July 2007 at 11:06AM

My husband has this morning spoken to the Inland Revenue, this is getting really confusing because the Inland Revenue are saying that the tax codes that he was on for the years in question were right, so how come he still owes tax ?, have his company being doing something wrong ?, The lady at the Inland Revenue is being really helpful so that is good, but how can this happen if the tax codes were right, my husband has also found out that a colleague that he works with also PAYE has got a tax bill for unpaid tax of £4000, I am so confused. Please help.

ctm_2 · 10 July 2007 at 5:42PM

cmacca wrote: »

I am so confused. Please help.

We need more information before we can halp. If you want to, post the information that I mention in my previous post, and we will have a look and see if we can figure anything out.

Jonbvn · 11 July 2007 at 12:28PM

Does your husband get any other "benefit in kind" other than salary? E.g. Car, meals etc?

doccer1967 · 19 July 2007 at 8:30PM

in my experience I have found that with the HMRC EVERYTHING is negociable. As other people have suggested here I would contact a tax advisor.

However what pi$$es me off about the HMRC is that they go after "easy targets" ie those people who they think will pay no questions asked, even if it is wrong whilst they ignore the likes of philip green, rupert murdoch or venture capital peple who pay minimal tax but get paid $$$$$.

I beleive each HMRC region works like a sales office whereby a target is set to claim form "unpaid" taxes or low hanging fruit...scandalous!

PAYE and Still owe over £3000 in Tax

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