MSE News: Thousands of tax code blunder victims to discover fate today

loopylass30

I recived a letter yesterday morning informing me of my new Tax Code as ive been paying emergency tax for the last 2 years, she did say on the fone when i rang to inform them my tax code was wrong that i should get a refund but theres no sign of that yet, altho it has only been a few weeks since the call, so fingers crossed i get it back..... how do i know that tax code given to me now is the right one tho!!!

loops

ginvzt

I have overpaid tax last year as my employer issued incorrect P11D. Had it sorted in the end for this tax year, but not for the last one. I called HMRC in July and they said they will sort it out and recalculate my last year's tax, but I haven't heard anything since (they didn't ask to fill any forms). Will be giving them another call in a few days to find out where my money is!

WaxiesDargle

another A19 Article

http://www.walletpop.co.uk/2010/09/07/secret-loophole-to-avoid-paying-tax-demand/?icid=main

suso

how many people are claiming mistake and error relief under section A19 when they owe.

how about a campaign to stop people being refunded under the same same regulations, if they have not claimed because they felt their tax affairs were in order, .

as a taxpayer who pays the right amount of tax, I object to funding refunding people approx 1.8 billion for the last two years and and not being able to charge people 2 billion for the tax they owe.

its not a question of money saving its a question of principal

dori2o

suso wrote: »

how many people are claiming mistake and error relief under section A19 when they owe.

how about a campaign to stop people being refunded under the same same regulations, if they have not claimed because they felt their tax affairs were in order, .

as a taxpayer who pays the right amount of tax, I object to funding refunding people approx 1.8 billion for the last two years and and not being able to charge people 2 billion for the tax they owe.

its not a question of money saving its a question of principal

You are not funding the refunds of people,they have funded their own refund by paying too much...hence why they are being refunded.

I've dealt with 2 of these cases today.

Both times the individual had given information to HMRC in order to update their tax code, and in both cases the information given was the reason why they were underpaid.

They were almost identical cases. Here's the gist of one

2 sources of income- 1 employment and 1 pension. Neither source on it's own was in excess of the 40% tax limit, but when both incomes were added together income was in excess of the 40% tax limit.

Information was provided to HMRC confirming estimated income for employment, and actual income for pension - submitted back in June 2008, and tax codes issued to each source based on this assumption.

Unfortunately, the individual under estimated their employed income by some £10k, therefore the tax code that was worked out to be operated against the employment didn't allow a large enough adjustment for the amount of tax due to be paid at the higher rate.

End result, Underpaid over 2 years to the tune of £1300.

So it shows, despite the common argument that it is all HMRC's fault, in many cases it actually isn't, and where it can be proven, either by notes on the record, recorded telephone calls, or any other means that HMRC received information in good time but failed to act on it, the underpayments will be cancelled.

Laneyboo

littlemissbossy wrote: »

I think overpayments are being paid via adjusting tax codes.

You should always update HMRC yourself about changes of details rather than relying on your employer.

HTH

HMRC have his correct details for tax credits etc, i just presumed that was the only call he need to make to let them know a change of circs.. I also presumed it was employer-related seeing as the wage slip was the only thing that had the old address.. hmm.

Lirin

I'm not overly surprised there's another problem.

When I was 16, I didn't get a NI number. Another girl nearby had bee issued two, but only 1 sent out physically to her.

Since then, I've had countless problems- denied access to my details when I've phoned on the basis of incorrect information- 1, marrying and not informing them (wasn't even dating at the time!), 2, Not giving correct DOB/ address/ phone number (had never changed from birth)....

I get letters all the time telling me various problems have occured, I've had demands for over 3k for working 5 full-time jobs, over 100 miles apart, and not paying tax (?? That threw me. Only had one job!)

It's at the stage now where it's funny. I've worked the same job for a number of years now, and recently received a letter saying my job details have been updated!

I requested a full copy of all my records, including phone calls and letters sent/received from the tax office- it's the only way I can ensure it's correct.

I've had to submit records and pay statements a few times now.

I'm just unlucky- I think it all stems from the original mistake with the NI number? It's been quiet for a few weeks since I received the last letter!

kiltyboy

Laneyboo wrote: »

Does anybody know how overpayments will be repaid? i.e cheque or through the bank or employer?

!

Cheque, I received one today

BoGoF

There is a very serious misconception in this country that because you are PAYE then 'your employer deals with your tax affairs'.

Until people are educated to take responsibility themselves then we will always have this situation where you are either under or overpaid.

For example how may people on here, if starting a new job that gave them medical insurance, would phone the tax office and notify them with an estimate of the taxable benefit?

The first HMRC will know about this is after the end of the following tax year when you have already accrued an underpayment.

dori2o

BoGoF wrote: »

There is a very serious misconception in this country that because you are PAYE then 'your employer deals with your tax affairs'.

Until people are educated to take responsibility themselves then we will always have this situation where you are either under or overpaid.

For example how may people on here, if starting a new job that gave them medical insurance, would phone the tax office and notify them with an estimate of the taxable benefit?

The first HMRC will know about this is after the end of the following tax year when you have already accrued an underpayment.

I completely agree, and cannot fathom why basic things such as this, i.e. what to do when you start a new job, benefits, p45, etc etc are not taught in school.

When I think of the things we did in PSE (physical and social education) where we once spent a whole 1 hr 30 minute lesson writing down all the swear words we could think of and then discussing their true meaning??????????? Surely it would be better to teach those in their final years at school, who are possibly entering the world of employment for the first time exactly what they should be doing.

It's amazing how many young people phone into HMRC and are absolutely convinced that as they are a 'full time' student they are exempt from tax. It was a former student I dealt with today with regards to a 2008-09 underpayment. He was absolutely convinced that as he was a student in that year he didn't have to pay tax despite his £9000 earnings. What had he done? Completed a P38 which clearly states that this is fine to do as long as you don't earn more than you personal allowance accross your entire income. This particular case he had upto 4 employers at the same time during parts of the year and a total of 6 employers during 08/09, but none of them deducted tax as he didn't earn over the 6035 threshold at any of them.

Too many people want to be spoon fed throughout their lives, well I'm sorry, but maybe something like this is what is needed to make people stand up and take their lives into their own hands.