MSE News: Tax chaos Q&A: How to fight HMRC demands

Mikeyorks

Gas_Powered_Toothbrush wrote: »

Agreements of three years or less will be dealt with by direct debit if they can't be coded out.

Fine, thanks, that I understand. But the question was to the effect of where do the DD payments go to?

If they're treated as 'voluntary direct payments' .... that's an accounting / admin nightmare in the making. They can't go to PAYE .... as there's only an employer accounting record there? (and can't be coded out if > £2k without changing the PAYE Regs) So I can only see SA as a port of call that supports DDs and is capable of being monitored? But - it also supports a 'due date' and interest charging ..... albeit the latter can artificially be suppressed.

muletman

Hi people

Can someone help me my missus has just recieved a p800 from 2007/2008 from what we can tell the sums are right as she had 2 jobs for part of the year they claim she underpaid £622
Now she just phoned them explaining that she understood she had under paid and that her hours have been reduced so she would really struggle to live (fact is we are extremely in debt with debts going unpaid currently getting help from payplan) basicly got told they have to get the money 2011/2012 and it didnt matter that she would struggle? would not help one bit

is it worth trying to get them to extend the payment time? to say 2 years atleast then we would be able to afford it? it really is gonna be hard for us? perhaps via a letter? the guy was not very friendly to her and said that they had a new system to find out these errors, she asked to get poor peoples money from them and he said yes!!! lol

Mikeyorks

muletman wrote: »

the guy was not very friendly to her

Unusual.

Yes they can extend the period over which they collect the underpayment to either 2 or 3 years. You need to read all of this :

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

............ in particular 2 full pages down :

If collecting your underpayment through your code would cause you financial difficulty
It is important that you contact us as soon as possible using the address or phone number on your P800 Tax Calculation. If we agree that collecting the underpayment over one year would cause you financial difficulty we may be able to spread the underpayment over two or three years.

smitchy73

I've just had a bill in for the 2007-8 year, from when I had a part time job, however, when I was in the agency working, my first year with them I had filled in a P46, I was laid off for a few months then they asked me back, I asked if they needed another P46 filled in and they told me it wasn't necessary and they put me on another tax code, to be honest I never paid any attention to the wage slips from the part time job as I just liked the money in my bank account. I never had a P45 to give them for them to put me on a tax code.

I intend to ask them to look into this matter, however, I did read that if it's been the employers fault, then they can be asked to pay the monies due.

Anyone got any suggestions or advice??

Mikeyorks

smitchy73 wrote: »

Anyone got any suggestions or advice??

Too little to go on. For your employer to be culpable they need to operate PAYE 'without reasonable care'. If that's the case HMRC would usually have some evidence of negligence over a period. Without that - there's little chance.

Read the HMRC link I posted on the previous post prior to yours? In particular the link inside there to the 'What Happens Next' flyer (you will have with your P800). That explains (Para 2) the process.

chergar

Hi wonder if someone here can help.
Hubby got a letter through regarding tax year 07/08 saying he had underpaid by a few hundred pounds, the reasons given were
"the amount of medical expenses benefit included in your PAYE code was lower that the amunt taxable" and
"the amount of benefit for the use of a van included in your PAYE code was lower than the amount taxable"
it breaks down overleaf saying income, van benefit, earlier years adjustment, car fuel benefit, benefits in kind (although we have no idea what these are and office is closed now so need to wait until monday to ask) and medical insurance payments.
It also has a flat rate job expenses of £65 as hubby has a uniform that he has to launder. It says his personal rate is £5225

We had no idea that he was underpaying tax as he has always been taxed quite a bit so we didn't see a dip or anything and thought he was paying what he should have, also could these reasons be down to the employer as hubby said he has no idea how much his medical cover is worth (he hardly knows anything about it) and how would he know thee amount that should be charged for use of a company van?

We also haven't been given an option to pay this over the course of the year and they are asking for a lump sum (further letter to follow with details about that)

Any help would be appreciated, thank you.

jennifernil

He should have received a form P11D from his employer, this shows the "benefits" he receives, like the van, the fuel and the medical cover. His employer also sends these figures to HMRC.

If he had expenses in his job then he can claim those back, so if any of the fuel went on work related travel, he can claim for that.

mondaymoney

Hi, I have seen a few people mention that if they have received two P800 forms then the underpaymant is added to the second tax years underpayment amount. Is that correct, as it isn't very clear on the P800s I have received.

I do intend to contact HMRC by phone, to discuss the forms so will be able to confirm the situation that way as well, but as I am in Switzerland thsi week, it won't be until next week that I can find out and I would prefer to know where I stand as soon as I can

Thanks in advance for any help

Mikeyorks

There is a total on the P800 for the latest year. It will refer also to the Notes (a '15' printed on the right side?) ..... which clarifies this is the total?

mondaymoney

Mikeyorks wrote: »

There is a total on the P800 for the latest year. It will refer also to the Notes (a '15' printed on the right side?) ..... which clarifies this is the total?

So just to confirm what you wrote above, even though I have two separate P800s covering two tax years, the latest tax year P800, is the total amount due for both P800s (and both tax years)?

So if P800 2008/2009 was £1200 underpaid and 2009/2010 was £2600, the TOTAL amount I need to pay back is £2600 (as the previous tax year amount is included)?


Think I have found the answer from the HMRC site:

If you receive more than one P800 Tax Calculation

If you receive more than one P800 Tax Calculation the amount of tax you have overpaid or underpaid in the earlier tax year is carried forward to the later tax year. This means you get a final figure of tax overpaid or underpaid for the two years. The amount carried forward from the earlier year is shown on your P800 Tax Calculation for the later year in the 'adjustments' box under the heading 'less other adjustments'.
For example, you underpaid tax of £400 in 2008-09 and overpaid tax of £500 in 2009-10. Your P800 Tax Calculation for 2009-10 carries forward the £400 you owe from 2008-09 and subtracts this amount from the £500 you overpaid in 2009-10. Your refund of £100 (£500 minus £400) is shown as the final result.
I hope that is the case, as I would prefer to pay back £2600, instead of £3800!