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

dori2o

kelpie35 wrote: »

I was told in a letter that I have underpaid my tax by £80. I receive an occupational pension of around £400 per cal mth. I received my pension today and it is £25 less. Told it is because I owe tax. Don't know if this is right or wrong.

What tax code is now being used, what was being used prior to this month, is this your only income? Also when were you informed and how, was it by issuing a calculation, or was it noted on a coding notice.

chrismac1

The letter ought to explain why HMRC thinks you underpaid tax. Pensioners are pretty likely to be caught up in this whole mess. Probably your state pension plus occ pension takes you just above your personal allowance - including age allowance, and in the past HMRC and the pension providers have between them messed up the tax code. Yours is exactly the sort of low value case which any sensible tax authority would have written off (whether in the taxpayer's favour or against) instead of this whole fiasco.

To know if they've got it wrong or not, we need the exact value of your state pension in the 08/09 year, the exact value of your occ pension, and your DoB. So long as you have no other sources of income or tax-deducible expenses. Plus the amount of tax you paid - if any - that year.

chrismac1

Another example today. A new joiner at a client had some supply teaching work earlier in the year, but for now my client is her sole employment. On the phone this became clear, but she'd ticked box C on the P46 - seeing it mentioned more than 1 job - so would have been paying way too much tax.

The P46 checklist I give my clients for new joiners has the statements and the tax implications - for example, tick box C and it's basic rate tax on the lot. Yet they still make the odd mistake like this. So it's easy to see why there are so many of these as the HMRC version of the p46 statements does not spell out the tax implications and only the very best payroll clerks I've had working for me during my career would both:

1. Realise these tax implications.
2. Take the time out to talk everything through with the employee to ensure they got the code right. For many payroll clerks as long as a box has been ticked that's good enough.

Mahmood_Reza

pennypinchingmum wrote: »

Hello all,
Unfortunately we have today recieved a letter saying my husband has underpaid and owes (what is for us) a large amount of money. However it was for the tax year 08/09 and his employer sorts out all tax. So i'm hoping we can appeal but i'm unsure of how to do this so i'd like some advice?

You need to clarify the reasons for your appeal, if all relevant information has been provided to HMRC then you will have a stronger claim. Seek clarification from your husbands employer as to the reasons why this occured. Subject to the reasons then you may be able to claim under what is called an extra statutory concession, which is "..a relaxation which gives taxpayers a reduction in tax liability to which they would not be entitled under the strict letter of the law." (A19).
If not, then it is a case of spredaing the pain.

elainey_2

Had the brown envelope today - got a refund - not a huge amount, but enough to treat myself some new clothes, and other treats! Which was nice....:beer::j:j:j:j:j

chrismac1

Now the BBC are leading with "£1.5Bn being written off from earlier years" - in my view this media story has got plenty of legs and this holds out the biggest hope that proper reforms of the shambles that HMRC has become will happen.

john8069

pennypinchingmum wrote: »

Hello all,
Unfortunately we have today recieved a letter saying my husband has underpaid and owes (what is for us) a large amount of money. However it was for the tax year 08/09 and his employer sorts out all tax. So i'm hoping we can appeal but i'm unsure of how to do this so i'd like some advice?

i allso recieved a letter saying i under paid £2500 2008/2009/2010 I am not going to pay it .I retire in 2 years .Lets see what happens.

System

john8069 wrote: »

i allso recieved a letter saying i under paid £2500 2008/2009/2010 I am not going to pay it .I retire in 2 years .Lets see what happens.

It would not do you any good to simply ignore the letter.

If you think it is wrong, then write back to query / challenge it.

If you simply do not pay, then HMRC will start adding interest to the amount owed and you will have to pay that extra too.

Bill_Williams

I received a tax demand totalling £1496.60 for the years 2008/9 & 2009/10.
Following the advice on MSE and a template published by THE GUARDIAN newspaper I wrote to the tax man.
Yesterday I receive a reply.They admitted they had mad a mistake and NO tax was due from me.
Many thanks to Martin and the team,one up for "the little man"

moneyfoolish

Bill_Williams wrote: »

I received a tax demand totalling £1496.60 for the years 2008/9 & 2009/10.
Following the advice on MSE and a template published by THE GUARDIAN newspaper I wrote to the tax man.
Yesterday I receive a reply.They admitted they had mad a mistake and NO tax was due from me.
Many thanks to Martin and the team,one up for "the little man"

Was that merely because they calculated your tax incorrectly?