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.

jjo_3

Regardless of who's fault it is, the tax will need to be repaid. HMRC have a policy which believes all taxpayers affairs are your own responsibility and need to double check with HMRC throughout the year in regards to PAYE coding notices and on your payslips as to what tax code is in operation.

The 31 january is a fixed deadline and this is non-negotiable, but there are a few options for you:

They have given you the time to pay number if you are unable to pay your balancing payment. They will only speak to you after the amount is outstanding (i.e After the 31stjan) regarding arranging a payment plan. However you still will be subjected to interest charges.



What sort of error occured on the tax return? Was it an error on your part or HMRC?


All of the above information seems disheartening, but there is some good news: If you did submit your tax return by the deadline and before the 30december 2009- you can elect to have balancing payment by collected through your PAYE coding for 2010-2011. This is an option for you- the £810 can be collected interest- free over a 12 month period commencing in April. Give your tax office a call for some advice.

jjo_3

... also HMRC is open on sunday to accept payments over the phone... they are open until 10pm

Little_Chicken

jjo wrote: »

All of the above information seems disheartening, but there is some good news: If you did submit your tax return by the deadline and before the 30december 2009- you can elect to have balancing payment by collected through your PAYE coding for 2010-2011. This is an option for you- the £810 can be collected interest- free over a 12 month period commencing in April. Give your tax office a call for some advice.

This is what I'd do - roll over the payments to 2010/2011, it's a bit annoying as it's their mistake, but it's the best option I'm afraid.

Mikeyorks

jjo wrote: »

They will only speak to you after the amount is outstanding (i.e After the 31stjan) regarding arranging a payment plan. .

That's simply incorrect. They much prefer people in difficulty to contact them prior the due date. The only time they will not discuss - is where you haven't filed and the liability is unknown.

This is an option for you- the £810 can be collected interest- free over a 12 month period commencing in April. Give your tax office a call for some advice

No such option in this case. As it's the repayment of an refund - because of errors on the Return - that is at issue.