P60 Clarification Please

Goldenyears

To the OP - Your employer must also have a system for paying allowable and tax free overnight subsistence expenses. How would they pay these to you if you claimed them, surely not in your salary ???

Pont

Goldenyears wrote: »

To the OP - Your employer must also have a system for paying allowable and tax free overnight subsistence expenses. How would they pay these to you if you claimed them, surely not in your salary ???

Hi Goldenyears. To be honest I've no idea how my employer would go about this - but I'm sure the situation would arise within a Local Authority due to various 'strategy' meetings held all over the country.

I've also just thought about the expenses saga with MPs. I don't believe their claims for second homes, duck houses etc were added to their salaries for taxation purposes, so in turn why would mine? I don't think their expenses of £50 000+ a year are included on their end of year P60s.

Hmmm.

Premier_2

Pont wrote: »

Yes, they had originally. But now, due to me going to HMRC and confirmed this was incorrect, my employer has agreed this was wrong and have since stopped taxing my reimbursement in my monthly salary. Nonetheless, they have failed to correct the mistake on my P60....

When was this correction made? Before or after 6 April 2010?

The P60 should reflect what actually happened in the appropriate tax year.

If, as seems the case, you received the extra income and were taxed on it as part of your salary, that is why it was included within your P60.

You should be able to recover the tax deducted through your annual tax return.


MP's are a law amongst themselves. e.g. they can claim £25 per day (up to £400 per month) unreceipted food allowance (for the days spent attending parliament) free of tax. No other employee would be allowed that. Us commoners can only get a maximum of £2.50 per day unreceipted for food.

Pont

Hi Premier - thanks for your comment. My monthly salary slips are set out similar to this:-
Salary ...........................£2000 } Tax/NI/SL applied to these amounts
Mileage (taxable).............£ 100 }
Mileage (non-taxable).......£ 100
Total Pay........................£2250

However, my P60 shows £27000 (12 X £2250) as my pay rather than £25200 (12 X £21000). So although tax/NI/SL are now being applied to my pay correctly, this isn't being reflected on my P60. It's my belief that my P60 should read £25200.

Claiming the tax back that I've overpaid isn't too much of a problem (except it goes back to 2003!), but the incorrect P60 is of a more urgent nature.

The correction was made in September 2009.

Goldenyears

Premier wrote: »

MP's are a law amongst themselves. e.g. they can claim £25 per day (up to £400 per month) unreceipted food allowance (for the days spent attending parliament) free of tax. No other employee would be allowed that. Us commoners can only get a maximum of £2.50 per day unreceipted for food.

That's just normal Civil Service practice. All central government employees get it for lunch and evening meal away from home. What's not quite right about MPs claiming this is they can get subsidised meals.

ioscorpio

I am having the same problem with my employer, on my payslips and P60 my mileage payments have had tax and NI deducted. The wages clerk said it was because I was a temporary employee. That's rubbish as the other agency I work for don't take tax and NI off my mileage payments.

Pont

jimmo wrote: »

Whilst it may make you feel better, moaning about what MPs get away with is not going to help you sort this out.
Just to repeat what I said previously you, personally, are suffering from your employer’s apparent incompetence in deducting excessive tax and NIC from your legitimate expenses claims and HMRC are absolutely powerless to help you. If your employer was under deducting tax and NIC there would be a pretty good chance that you could persuade HMRC to hit your employer for the correct tax, interest and a penalty.
However, like it or not, there is no punishment that HMRC can impose on anyone for paying too much tax or NIC.
As you seem to have already found out HMRC should, eventually, repay any over deductions but that will always take time.
Speaking from my own personal experience as a student many years ago and, more recently, as a parent of students, the “bank of mum and dad” is going to be where the buck stops.
I am sorry but one way or another, you have to take on your employer.
HMRC cannot help you.
If your Union will not help you, you may wonder why you bother being a member.

I know having a moan about MPs won't help, but still can't help feeling one rule for some......... etc :mad:
However, must move on and get this sorted. With regards to HMRC, I'm very fortunate insofar as I have a name/contact that has been dealing with this case for 2 years now. I've recently sent another letter stating that my employer has not sorted out the problem as promised, and that I want her to deal with it directly (she said she was prepared to 2 years ago). So in this case HMRC are going to help.
Payroll told me that HMRC are likely 'to stick a massive fine' on them for 'incorrect administration'. Apparently the fine is based on the number of employees they have. I'm not too happy about this as I'm also a council tax payer and will surely see a hike in next year's charges to cover the costs! Ultimately, over 7 years now, I'm owed several thousand - I've waited long enough for my employer to get their act together - I want my money!
As for the unions, they have done absolutely nothing! I'm not in a union, but many of my colleagues are and they are fuming mad.
Additionally, a friend (of a friend) is a barrister specialising in employment law. He knows the ins-and-outs of our ongoing problems and has stated (off the record) that we are clearly in the right. Although I'm resigned to this taking some time to sort out in full (there are many other problems in addition), it doesn't resolve my daughter's current situation. So it gets back to if my daughter gets a depleted grant due to my present P60 being incorrect, who is responsible for the recompense - HMRC or my employer? The "bank of mum and dad" can't make up the shortfall!

SJ1

May be way off with this but have you tried completing a tax return to reclaim the money?? You know that it is incorrect and you actually have the payslips to prove that. You have to complete a tax return 'to the best of your knowledge and belief' and you KNOW that the P60 isn't right but your payslips are. My advice would therefore be to ignore the P60, keep all the other paperwork that proves it is incorrect and file on the correct basis. Keep all email correspondence and the advice from HMRC website about the mileage being non-taxable. You can complete online and you get a repayment within 7 days usually. It is also quite simple to do, you just need all the information in front of you and its a doddle. If HMRC were to ask you for it the information you would have it all ready and if you were in doubt you could leave a comment in the box at the end. Now this does mean that you have to wait until the end of the tax year to get the money back but at least you are getting it back. On that I have just completed my form for 2009/10.

Re your daughter, what information do you have to provide? Do you have to provide the P60 or would copies of your payslips for the year be ok?

Agree that you have to keep pursuring the dept to deal with this. I had a similar problem a few years ago now where they got the number of months of tax allowance my husband received incorrect. It took months to sort out but we got there in the end. Problem is with them and not HMRC really so find someone good and bombard them with letters and emails about this. It was the only way that I got our money back.

Good luck. SJ

Pont

jimmo - I take on board your post.

jimmo wrote: »

Now that can be used to very good effect when talking to an employer with a few thousand staff but the reality is that any penalty imposed will be a fraction of the maximum.
There's between 7000 and 10000 afaik.

Having said that, the fact that HMRC already knows that your employer is messing up on certain aspects of PAYE significantly increases the likelihood that there will be a PAYE audit and who knows what else the auditors will find.
There's loads of other issues ongoing regarding payments - too many and too complicated to get into here.

Now look! We only have one side of the story on here, yours. However what on earth makes you even dream that if your employer is messing things up big time you will be able to claim compensation from HMRC?
When I spoke to payroll regarding the 'knock on' effect due to their mistakes, they told me that HMRC issue P60s so it will be for HMRC to sort out! I told them HMRC are acting on your information so surely it will be you to sort out. I'm not dreaming (my employer's are), just wanted clarification as to if I was correct.

I realise this is harsh but quite frankly, if the “bank of mum and dad” can’t cope with the situation your daughter’s future is at risk, firstly because of your employers’ incompetence and secondly, and very importantly, because of your procrastination allowing this nonsense to go on for 7 years.
Totally agree - I have to accept the telling off from you. I have tried to get this sorted out over the past 2 years but you're absolutely right, less talk and more action now!


Pull your finger out and get this sorted or face the reality that you will have to tell your daughter that she cannot go to University. It really is as harsh as that.
Yes, it's because of my daughter's situation that has finally kicked me into touch. Letters/emails have been sent.

Pont

SJ1 - thanks for the suggestions.

SJ1 wrote: »

My advice would therefore be to ignore the P60, keep all the other paperwork that proves it is incorrect and file on the correct basis. Keep all email correspondence and the advice from HMRC website about the mileage being non-taxable.
I've got all the documents filed. The problem is that student finance say they can only act on the information on my P60. I've explained the situation, shown them the letters from HMRC etc. They say I have to get new, accurate, P60s issued from HMRC . Herein lies the problem as my employers are dragging their feet in implementing HMRC instructions.

You can complete online and you get a repayment within 7 days usually. It is also quite simple to do, you just need all the information in front of you and its a doddle. If HMRC were to ask you for it the information you would have it all ready and if you were in doubt you could leave a comment in the box at the end.
I'll look into this further - thanks.

Re your daughter, what information do you have to provide? Do you have to provide the P60 or would copies of your payslips for the year be ok?
It seems not - see above. This is not only a problem for my daughter but to rub even more salt into the wound I'm also paying too much in the way of student loan repayments because of these mistakes!

Good luck. SJ