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

rentawitch

As far as I understand the letter is only a check digit. If you doubt the validity of the letter, check the address it has come from. That should be possible from the Revenue website.

rentawitch

hannah8008 wrote: »

Dear BoGof,

My question about the law and income tax was a genuine one. Income tax was first introduced in 1842 by Sir Robert Peel, and has been repealed and changed so often that I wondered if there had been changes since the last income tax act in 2005, and if infact this act had been made law. That might sound a bit silly but some times things slip through the net even something as large as this. Can anyone tell me if it did infact get passed as a law or if the government did infact just assume that we would all just comply so it never got done. This has happened in other countries and has not been discovered till later when someone has done some digging.

I would like to thank everyone who is trying to help others on here and not just being rubbish for the sake of it. (That said it is not directed at any one in particular just a general statement of my own opinion)
Kind regards

Each year there is a Finance Bill (the budget to you and I) and this is discussed in committee and may be subject to change. When they are satisfied with it, 'Royal Assent' is requested - the Queen agrees to sign it and it then becomes law as a Finance Act.The various Finance Acts are consolidated every few years.

The last ICTA was 1988. There have been other acts since. Most recent 'main' one was Income Tax Act 2007.

dori2o

beedeedee wrote: »

Now then , I've just opened a letter from HMRC wanting me to confirm my details - NI number, D o B, last addresses etc and I notice my NI number on their letter is missing the last letter................should I be worried?

The last letter used to be used by the NIC office to determine which quater your NI card ,a card you had stamped (hence the term paying your 'stamp') every week to prove NI contributions, was due for submission. These were sent to the DSS in either March (A), June(B), September(C) or December(D) to be recordedin a ledger, and you were given a new card to record your NI contributions for the next year.

It is now redundant and not really needed but the number was never changed due to cost.

angmac142

Thanks MSE Guy. I received a letter from HMRC to notify me of an underpayment of tax in 2008-09. I took the advice in your article and rang them to say that I wished to make a claim under ESC A19 as all my tax etc is recovered directly through my employer and naturally I assumed that my tax affairs were in order, particularly as 18 months have ensued since the end of the 2008-09 tax year. However, I was informed that P14 details for 2008-09 tax year submitted by my employer would only have been received by HMRC by end of 2009 calendar year and hence they (HMRC) were still within the 12 months timescale to follow up on clawing back the underpayment made by me. In short, I was told that if only P14 details had been made available to them through my employer (and if I had not informed them otherwise of any other changes during the 2008-09 tax year) then HMRC were still within the 12 months and my claim was unsuccesful.

Does this seem right or am I being fobbed off?

Thanks, Angmac142

dori2o

angmac142 wrote: »

Thanks MSE Guy. I received a letter from HMRC to notify me of an underpayment of tax in 2008-09. I took the advice in your article and rang them to say that I wished to make a claim under ESC A19 as all my tax etc is recovered directly through my employer and naturally I assumed that my tax affairs were in order, particularly as 18 months have ensued since the end of the 2008-09 tax year. However, I was informed that P14 details for 2008-09 tax year submitted by my employer would only have been received by HMRC by end of 2009 calendar year and hence they (HMRC) were still within the 12 months timescale to follow up on clawing back the underpayment made by me. In short, I was told that if only P14 details had been made available to them through my employer (and if I had not informed them otherwise of any other changes during the 2008-09 tax year) then HMRC were still within the 12 months and my claim was unsuccesful.

Does this seem right or am I being fobbed off?

Thanks, Angmac142

What are the circumstances surrounding the underpayment? How has it arisen, i.e. 2 jobs same tax code? employment benefits such as company car or medical insurance?

If you can explain the situation regarding the underpayment then you may get advice on whether the rejection of ESC A19 is correct or not.

angmac142

Thanks for response Dori2o. Circumstances were main employment salary plus HM Forces pension with same tax code. It took HMRC until now to work out that the combination of the 2 had put me over the threshold at the time and that some of my earnings should have been taxed at the higher rate. Is this suffice info?

dori2o

angmac142 wrote: »

Thanks for response Dori2o. Circumstances were main employment salary plus HM Forces pension with same tax code. It took HMRC until now to work out that the combination of the 2 had put me over the threshold at the time and that some of my earnings should have been taxed at the higher rate. Is this suffice info?

When did the forces pension start? When did the employment start?

Have you at anytime between April 2008 and April 2009 contacted HMRC with regards to the 2 incomes and tax codes being operated?

angmac142

Pension started at the end of 2002 on completion of 22 years in the Army. Current employment started in June 2003.

I didn't contact the HMRC at any time during 2008-09 as my tax is deducted at source from employer / pension and therefore naturally assumed that everything was in order or taken care off. I hadn't gone over the threshold by too much and personnaly I'd still be none the wiser that I had gone over if I hadn't seen the HMRC calculations they've just sent me.

dori2o

How much was the incomefrom each source?

Did hmrc issue you with a tax code in 2008/09 for either source of income? If so what codes were issued? If you did not receive a coding notice for that year, have you asked HMRC if any codes were issued and what those codes were?

kickwhamstunner

The rejection under ESC A19 is correct. For it to apply, HMRC must have failed to act on information within 12 months of the end of the tax year in which it was received. The P14 details for 08-09 would have been received during the 09-10 year, so HMRC has 12 months from the end of the 09-10 year to act on it. In short, since they've acted before 5th April 2011, the claim will fail.

The reasonable belief test is only considered if the time test is satisfied.