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

Mik77

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.

neilmcl

What has the Time to Pay helpline suggested in terms of when and how to pay. I would suggest using this to give yourself breathing space and then lodge your appeal.

Ivory_Tinkler

Time to pay arrangements probably allow you to defer payments and/or pay over a few months. Ring them back tomorrow to discuss the best option for you and this will get them off your back while you sort it all out.

DVardysShadow

The deadline of 31 January is not reasonable in the circumstances, but you will never get anyone senior enough to say that near a phone.

Just write, ask for a full explanation and say that once you have agreed the matter you will make arrangements to repay.

Ivory_Tinkler

DVardysShadow wrote: »

The deadline of 31 January is not reasonable in the circumstances, but you will never get anyone senior enough to say that near a phone.

Just write, ask for a full explanation and say that once you have agreed the matter you will make arrangements to repay.

But there is no time to write - tomorrow is Wednesday and due to 31st falling on Sunday anything that needs to be arranged should be in place by Friday. This is the revenue we are talking about here and they don't tend to be overly sympathetic. OP, the best course of action is to ring tomorrow and get a time to pay arrangement in place. Once this has been sorted out it will give some breathing space while the problem is resolved. I believe there is an automatic fine for late submission of tax but if the time to pay arrangement is in place before that date, then there won't be a fine.

Mik77

Ivory_Tinkler wrote: »

But there is no time to write - tomorrow is Wednesday and due to 31st falling on Sunday anything that needs to be arranged should be in place by Friday. This is the revenue we are talking about here and they don't tend to be overly sympathetic. OP, the best course of action is to ring tomorrow and get a time to pay arrangement in place. Once this has been sorted out it will give some breathing space while the problem is resolved. I believe there is an automatic fine for late submission of tax but if the time to pay arrangement is in place before that date, then there won't be a fine.

Thanks, I'm going to ring them today and make some attempts to clear this up.