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

Mikeyorks

mondaymoney wrote: »

the latest tax year P800, is the total amount due for both P800s (and both tax years)?

Yes ...... provided they were calculated (and therefore received) together.

There will be a Note '15' in the right margin of the final P800 if that is the case. And you refer to the P800Notes which were enclosed? Which more or less encapsulates - in fewer words - what you've posted off the HMRC site.

But if you check the individual P800s ....... it's not too difficult, I recollect, to work out that each underpayment (or under / over payment combination) nets to the final figure?

magsdan

Hi - has anyone successfully appealed these P800s? If so - please can someone help me with 'a strongly worded letter'.

I am a pensioner receiving government pensions and my state widow's pension. My tax has always been paid PAYE with no tax returns from me. Now HMRC tell me I owe £1208 for 2008/9 and £1298 for 2009/10 - a grand total of £2502!!

I cannot afford to repay all that money out of a £15k pension! They tell me that ESC A19 does not apply as they informed my pension department. And my pension people applied the wrong tax code.

HMRC say I should write to appeal - please can anyone help me???

Thanks

Mikeyorks

magsdan wrote: »

HMRC say I should write to appeal - please can anyone help me???

Thanks

Read ...... the 'What Happens Next' leaflet enclosed with the P800? Para 2 explains what you do ....... it does not need to be 'strongly worded' ...... just use the detail (pension provider has not used the Code issued) HMRC gave you.

Also check that your current deductions from your pension provider are correct.

busybee100

What happens when your employer will not comply with Inland revenues requests?
IE revised p11d or letter of amendment.

magsdan

Mikeyorks wrote: »

Read ...... the 'What Happens Next' leaflet enclosed with the P800? Para 2 explains what you do ....... it does not need to be 'strongly worded' ...... just use the detail (pension provider has not used the Code issued) HMRC gave you.

Also check that your current deductions from your pension provider are correct.

Thanks - I have done that. And good advice re current deductions but.....

I have contacted my pension provider and they say they have heard nothing from HMRC despite sending my P60. So I am still paying the wrong amount and the pension folk can't do anything until HMRC tells them to change my code! I also have no record of tax code notifications. I will just write my best and see what happens.

KrazyKel

My mum had a letter today saying she has underpaid tax from 07-08 I think of around £780
Im worried how she will pay it back, she has been given a new tax code so will come through her income.

It says she had 2 jobs at the same time, both giving her personal allowences, But i dont think she had them at the same time
She works for the NHS and was on Bank staff before getting a contract/permanent job there on the ward. Dont think she would have had them both at the same time, but will look into all her paperwork later

She has been off sick for the past 9 months and not sure if she will go back, if she does will be on less hours and day shifts (less money) so dont know how much it will effect her income or benefits if she doesnt return!

Murky

Hi,

I have received a P800 from HMRC for 2009/2010 relating to 'Employee Loan Benefit' which I assume is a staff rate mortgage I had from when I worked at RBS. At the time the mortgage was arranged it was pre credit crunch/banking crisis so the rates were very customer friendly. I was on a tracker that was the same as Bank of England base rate. This means that for year 2009/2010 I was only paying 0.5% on my mortgage. This staff rate was 0.5% better than the regular customer rate at the time (1%)

From looking at the 'Beneficial loan arrangements - official rates' page on the HMRC site, the official rate of interest was 4.75%. How can they justify this amount when the base rate was 0.5% for the whole year ? By my (very basic) calculations, the benefit to me from having the staff mortgage was 0.5 % - the difference between the staff rate and the regular customer rate, yet I am now hit with a £2300 tax bill due to them basing it on a benefit of 4.25%.

Have I got the above correct, and more importantly have I got any hope of having this amount reduced ? It's insane to think that over the course of the year being on the staff rate mortgage I probably saved no more than £300-£400 than had I been on the customer rate yet according to HMRC's calculations the 'benefit' was £6200.

dori2o

Murky wrote: »

Hi,

I have received a P800 from HMRC for 2009/2010 relating to 'Employee Loan Benefit' which I assume is a staff rate mortgage I had from when I worked at RBS. At the time the mortgage was arranged it was pre credit crunch/banking crisis so the rates were very customer friendly. I was on a tracker that was the same as Bank of England base rate. This means that for year 2009/2010 I was only paying 0.5% on my mortgage. This staff rate was 0.5% better than the regular customer rate at the time (1%)

From looking at the 'Beneficial loan arrangements - official rates' page on the HMRC site, the official rate of interest was 4.75%. How can they justify this amount when the base rate was 0.5% for the whole year ? By my (very basic) calculations, the benefit to me from having the staff mortgage was 0.5 % - the difference between the staff rate and the regular customer rate, yet I am now hit with a £2300 tax bill due to them basing it on a benefit of 4.25%.

Because the HMRC rate is based on the average rate of a customer mortgage throughout the industry not just at your employment.

Despite the BoE BR being 0.5% the majority of mortgage deals for the layman in the street is 4% - 5%.

Murky wrote: »

yet according to HMRC's calculations the 'benefit' was £6200.

Wrong.

The figure used in the calculation should have come from your P11d, which is completed by your employer.

Check your 2009/10 P11d to ensure the figure used in the assessment is correct. If it is and you dispute this figure, speak to your employer.

Mikeyorks

Murky wrote: »

Have I got the above correct, and more importantly have I got any hope of having this amount reduced ? .

No chance of a reduction ..... unless the P11D is wrong. Similar recent thread with some links :-

https://forums.moneysavingexpert.com/discussion/2988582

Murky

dori2o wrote: »

Because the HMRC rate is based on the average rate of a customer mortgage throughout the industry not just at your employment.

Despite the BoE BR being 0.5% the majority of mortgage deals for the layman in the street is 4% - 5%.

As mentioned above I took out this mortgage pre banking crisis when the banks were literally throwing mortgages at you. When I took out the mortgage, the customer rate at the bank was .29% above base rate. I haven't checked other banks rates at that time but I am sceptical that the majority of deals were 4%-5%.

Wrong.
The figure used in the calculation should have come from your P11d, which is completed by your employer.

Check your 2009/10 P11d to ensure the figure used in the assessment is correct. If it is and you dispute this figure, speak to your employer.

I have requested a copy of the P11D which just states the figure so have requested a breakdown of how that figure was reached. You are correct in saying that it was my former employee that came up with this figure however they did that based on HMRC's 4.75% rule.

Mikeyorks wrote: »

No chance of a reduction ..... unless the P11D is wrong. Similar recent thread with some links :-

Thanks Mikey, from looking at that thread it looks like I am lumbered with this. What's doubly galling is that this amount has taken me over the 40% threshold