Tax - did i pay up too soon

indebtbigtime

About 6 months ago it was mentioned to me by my employer that I claim a tax releief on the difference between what i get paid...14p and what inland revenue say my employer could pay me 40p per mile for business expenses

Made a claim

Got asked to fill in self assessment from 0506 through to 0910

Did this, Inland Revenue agreed BUT claimed that I owed them money as I hadnt been paying tax on medical insurance my employer provide me as a benefit. I was atounded and explained since I joined in 05 I have had this (as per my forms) and believed PAYE would have reflected this...

anyway - long story short I ended up with £876 bill

I asked to pay it back via PAYE but was told no, I had 7 days to settle or start paying interest

Claimed I couldnt on DMP with CCCS (indebt big time...) no sympathy, and having been charged interest I cancelled the £50 a month DD i had set up and paid in full by debit card 2 weeks ago

Reading in the press and on here, that some of these errors in tax are Inland Revenues maybe not employers or individuals.....I am thinking perhaps I could have asked them to prove I hadnt provided the correct info (or my employer hadnt via P11d etc etc - all of which I got from my employer and clearly show the benefit)

BUT I have paid...kicking myself!, what now.....?

advice appreciated

Gertie_Walker

The key question is whether or not you pointed out to HMRC that you were getting this benefit and they failed to act on this info?

jammydodger0905

EXACTLY the same happened to me!! I ended up paying back 4 years worth of "underpaid" taxes to the tune of £1300!! I spoke with my employer's HR department and it turned out that the information had been sent to HMRC but they had a computer glich with caused them to lose my information. So in their wisdom, they just re-used my old tax code which was obviously incorrect! I think they do this with A LOT of people because they know that many of Joe Public do not know about the clause being made public now!

I'm furious about it, because I did try to contest it by telling them that it was their error, but their retort was that "taxes are the responsibility of the individual, regardless of whether you are on PAYE or not!"

Crazy, but true!

indebtbigtime

ok, but as I have paid, is it all irrelevent now

I have P11ds for the past 5 years (online with work) showing the benefit, hence I ASSUME that this was passed to Inland Revenue to my employer

I never self assessed so i never had been asked nor had I told IR about the benefit.....I just (naively) assumed HRMC new the facts and I pad the correct tax

I am thinking I am too late to contest as I have now paid the debt they created for me??????????