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Inland Revenue is chasing my friend. What should she do?

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Comments

  • There is no point in sending anything to HMRC signed for as (a) they dont sign for things and (b) they would argue that there is no proof of what was actually in the letter.
    You need to write and clearly state that you returned the cheques you received as your name was spelt wrongly. They will then check with the HO and make sure the cheques are cancelled and then issue another. I would also expect them to amend the 08-09 computation and cancel the small underpayment.
  • Does your friend intend returning to the UK. What is their nationality?
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
    The Lord Giveth and the Government Taketh Away.
    I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
  • mfang
    mfang Posts: 6 Forumite
    hi inmypocketnottheirs
    i am a Singaporean and only intends to return to uk for holiday not for work. thanks.
  • mfang
    mfang Posts: 6 Forumite
    i just read on hmrc website for PAYE Tax Calculations

    You may have seen media coverage over the past few days about over and underpayments of tax. Please do not call us in response to media coverage about over or underpayments of tax unless you have received a letter from us (P800 Tax Calculation) and need to discuss it. Most people have paid the right amount of tax and won’t get a letter so don’t worry if you don’t receive one.
    You will only receive a letter if we believe that you have under or over-paid tax. The first batch of letters started being delivered this week. We cannot help you until you have received a letter from us.
    If you do get a letter it will include a Tax Calculation (form P800) from us telling you if you have paid too much or too little tax for the tax years 2008-09 and 2009-10. The calculation shows your total income and the allowances that are due to you for each of these years.
    To ensure that the tax system is fair for everyone - where everyone pays their fair share – we are taking action to recoup these funds as painlessly as possible.
    Those individuals who have overpaid will receive a full refund.
    Those who have underpaid will make additional payments through the PAYE system, provided the payment due is under £2,000. All payments will begin next year, and no immediate, one-off payment will be required. In cases of genuine hardship HMRC will allow payments to be spread across a period of 3 years.
    If the payment due is over £2,000, HMRC will write to the individual again setting out the next steps for repayment.
    You may also have seen in the media, suggestions that any underpayments of tax could be 'written off' by HMRC.
    HMRC can consider writing off the underpayment only in certain circumstances. Basically these are if we have been provided with all the information necessary to get your tax right and you could have reasonably expected your tax deductions to be right. In these circumstances you will need to contact us and ask for the underpayment to be reviewed on that basis (we call this an 'Extra Statutory Concession').

    The PAYE reconciliation process occurs every year, and is there to reflect changes in people’s earnings and employment status that occur over the course of a tax year. Last year, no reconciliation process was undertaken and this year HMRC have had to complete the reconciliation process for two years instead of one.
    The ‘Exchequer Secretary’, David Gauke, answered some questions in the House of Commons on 8 September 2010 about over and underpayments.
    What you need to do with your letter
    • If you receive a calculation, it’s important you check it to make sure you agree with the information included. The calculation will show your total income, the allowances that are due to you for each of these years, the amount of tax paid and the amount of over or underpaid tax.
    • If you agree with the calculation you do not need to do anything but keep it safe.
    • If you have received an overpayment you should bank your cheque. You do not need to contact us.
    • If you have received an underpayment notice, please note that this is not a demand for payment. We will send you a P2 coding notice from January 2011 that will be the formal notice that we will be changing your tax code for the tax year 2011/12 to recover what you owe.
    • Please make sure you read the notes that came with the calculation as these will help you understand what it means.
    What to do if you think the tax calculation in your letter is wrong

    If you don’t agree with something included in the calculation in the letter, you can contact us on the number provided in the letter or write to us at the address shown on the letter. During this time we will be putting more staff on our PAYE help lines to support customers.


    so which means i will have to wait till Jan 2011 for their formal letter of payment??
  • mfang wrote: »
    hi inmypocketnottheirs
    i am a Singaporean and only intends to return to uk for holiday not for work. thanks.

    Know what I would do?

    Nothing.
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
    The Lord Giveth and the Government Taketh Away.
    I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
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