Is this right?

kelloggs36

A few months ago, it came to light that my hubby's employer had incorrectly given him tax relief on his season ticket loan. This came to light when a new payroll company came in. They amended it and it was corrected. He was assured that they would pay the shortfall due to the IR. Last month they made a payment to my hubby via his wages as the gross amount due, took tax and NI from it and then took the whole gross amount back again - don't know why it was done this way??? My query is that he has paid extra tax now, when the employer had promised that they would pay the shortfall. This doesn't look right to me - he is now £150 short this month and he was given no warning that this would happen.

fengirl_2

He needs to query this with his employer - presumably the agreement was in writing?

kelloggs36

yes and he has but they haven't responded to his e-mails and calls.

fengirl_2

I think he needs to rite to someone in authority in the company and threaten to raise a grievance. This is really between him and his employer - there is not a lot HMRC can do as it was an internal agreement.

Dave101t

if its owed to HMRC, they dont care what the employer says, the employee owes the money. so he should get a cash rebate from the employer, but deduction would have to come out of wages.

kelloggs36

They gave him the cash rebate and then taxed and NI'd him and then took the whole lot out???? That is what I am querying - have they done it right - to tax him on tax and to charge NI when he has already paid NI on the whole amount anyway - doesn't seem right.

maher_01

Its a case of double taxation. I am sure there are some errors in calculation rather than this being done deliberately. So bring it to the notice of the concerned dept. of the company and it would be sorted out hopefully.

tyllwyd

Are you saying that they gave him, say £100, then deducted, say £25 tax, leaving him with £75 - and then deducted £100 so that instead of gaining £75, he lost £25?

kelloggs36

Yes that is right tyllwyd.

tyllwyd

I can't see the logic behind that - he should definitely keep chasing his employer to find out what's going on. On the face of it, it certainly looks like a mistake on their part. As far as I can see, as it stands, he hasn't been given a loan for his ticket, and he's paid tax on money he never received!

kelloggs36

He has finally had a response from employer - they admit they made a mistake and he will get the shortfall in next month's wages. I thought it was not right!!