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Help received a Tax overpayment charge for £900 today due on 31st Jan

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Hi, I'm at my wits end here, please provide some advice.

I am employed by local government agency, and received a Self Assessment tax form earlier this year for the tax year 2008-2009, (I was told this is due to me claiming car expenses and mileage).

I completed the form using information from my March 2009 payslip, and also information from the PAYE Coding Notice for 2008-09 (dated Jan 2009)

The Self Assessment form was returned in August 2009, and in October 2009 I recieved notification that I had overpaid tax to the value of £804, therefore this was placed into my bank account.

I received a letter today from the Tax Office, stating that due to 'their' error, I had received an 'over-repayment' to the value of £804 and that I have until 31st January to return this amount.

I have contacted the tax office by telephone and have been told the following;

1/ The information submitted on the SA form was incorrect, hence the initial £804 being paid to me but now that it has been checked they realise that they need to recoup it.

2/ They cannot discuss figures over the phone, but would be prepared to send me a photocopy of the SA form, (which can take upto 7-10 days to be issued, despite the total amount needing to be paid in 5 days time)

3/ I can appeal the amount, wever they cannot give me a timescale on when this would be dealt with, again pushing me past the 31st January.

4/ I have been provided with details of the 'Time to Pay Helpline', who offered to set up a standing order to take payment, however I don't want to do this without first looking into an appeal, as it may suggest that I am liable to pay back the full amount.

Finally I have been told that if I do not make payments by 31st January I may be forced to pay legal fees and interest on the money owed.

At the moment I don't have the means or funds to gather that sort of money at such short notice, if I have been overpaid then I will be more than willing to come to an arrangement and pay back every penny, however I think it is unfair to demand this payment within a 5 day window. (2 days considering the 31st January is a Sunday, therefore the payments may need to be made on Friday 29th Jan.) This would just about give me time to post a letter.

I'm hoping someone can provide me with some advice on who I can speak to, to at least get me a bit more breathing space until an appeal, or until the case can be properly looked into, as the advisors I spoke to tonight didn't seem in the slightest bit bothered.

Thanks to anyone who took the time to read this and give a helpful reply.

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    This is how self assessment works I'm afraid - you complete the form and it is processed. If it is checked later and found to be wrong, you repay the tax.
    You need to see HMRC's calculation of your liability along with a copy of your self assessment in order to decide whether you need to appeal. You need to pay something towards this bill and speak to a collector to arrange a stage payment.
    I am a bit concerned that you used your notice of coding to complete your self assessment as a coding notice is only provisional.
    Basically, the tax is due until you can show its not and you will be charged interest on unpaid tax, so you need to pay as much as you can.
    Go into your local tax enquiry centre once you get the copy self assessment and they should be able to advise.
    £705,000 raised by client groups in the past 18 mths :beer:
  • System
    System Posts: 178,348 Community Admin
    10,000 Posts Photogenic Name Dropper
    HMRC operate a process now check later policy with regard to self-assessment. Basically because it is SELF-assessment and they expect taxpayers to complete the form correctly.

    You need to check the calculation they sent to you when they processed your tax return to see where the supposed error occurred. If you think you completed the form correctly then you need to appeal their latest assessment. If you find out you completed the form incorrectly then you need to come to an arrangement asap.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Mik77 wrote: »

    Thanks to anyone who took the time to read this and give a helpful reply.

    Duplicating this on 3 separate Forums of this site is both against the rules ..... and very unhelpful both to people offering advice - and yourself in trying to assimilate it? You've already had a most unhelpful and erroneous response on one of the other posts .... but you won't know that.

    You need to work on the basis the £804 (at least) is repayable. You should be able to view your Return data still and work out where you went wrong .... but otherwise you've got to await the copy. Meantime you need to work out an arrangement with them (they do not accept SOs .... I think you mean Direct Debit?) ...... and make the maximum payment you can afford by 31st Jan to mitigate the interest. Making an arrangement will also neutralise the 5% Surcharge they will otherwise levy on any balance outstanding by 28th Feb.
    If you want to test the depth of the water .........don't use both feet !
  • suso
    suso Posts: 548 Forumite
    If you come to an arrangement with the time to pay people, I wouldn't mention the fact you just inherited approx £ 28,000

    Although they might already be aware of that, if you were named as the executor on the R27.
    He's not an accountant - he's a charlatan
  • Mik77
    Mik77 Posts: 119 Forumite
    suso wrote: »
    If you come to an arrangement with the time to pay people, I wouldn't mention the fact you just inherited approx £ 28,000

    Although they might already be aware of that, if you were named as the executor on the R27.

    You've certainly done some homework, it's a shame your incorrect as I'm a beneficary to the will, not executor, and haven't received a penny yet, hence worrying about how to pay this before 31st Jan.
  • harryhound
    harryhound Posts: 2,662 Forumite
    Get a payment on account from the executor?
  • Mik77
    Mik77 Posts: 119 Forumite
    Thanks to all those who have given me a bit advice, having never filled in a self assessment form, and receiving zero advice from my payroll department, and the Tax Office, I accept that I may have made a mistake.

    I apologise for potentially clogging upt the forums with a duplicate post, but I paniced when I received this letter, as it effectively gives me until Friday to make this payment.
    Mikeyorks wrote: »
    Duplicating this on 3 separate Forums of this site is both against the rules ..... and very unhelpful both to people offering advice - and yourself in trying to assimilate it? You've already had a most unhelpful and erroneous response on one of the other posts .... but you won't know that.

    You need to work on the basis the £804 (at least) is repayable. You should be able to view your Return data still and work out where you went wrong .... but otherwise you've got to await the copy. Meantime you need to work out an arrangement with them (they do not accept SOs .... I think you mean Direct Debit?) ...... and make the maximum payment you can afford by 31st Jan to mitigate the interest. Making an arrangement will also neutralise the 5% Surcharge they will otherwise levy on any balance outstanding by 28th Feb.
  • suso
    suso Posts: 548 Forumite
    Mik77 wrote: »
    You've certainly done some homework, it's a shame your incorrect as I'm a beneficary to the will, not executor, and haven't received a penny yet, hence worrying about how to pay this before 31st Jan.

    I never said you were the executor, I said IF you were named, they MAY know about the inheritance.

    On a seperate note, have you contacted the time to pay helpline, I'm intrigued to hear their response.
    He's not an accountant - he's a charlatan
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