Underpaid tax 2007-2009

nonfoabove

Apologies if I am in the wrong forum. If my question should be posted elsewhere, could you advise?

I recently applied for tax refund going back to 2008 for fuel expenses (I have my own car and use it for business travel - I wasn't aware I could claim until this year). I just received a reply detailing underpayments going back to each tax year from 2007 through 2009. It seems the tax office didn't give me the correct coding for each of those years. They were not charging enough for benefits (Medical Insurance, & Fuel). The underpayment is a large sum of money, around £5,000 GBP in total.

However, they did receive the correct information from each of my P11d's submitted by my employer (all the benefits were correctly detailed, but for some unknown reason, the tax office did not use the correct amounts when calculating my tax).

I received tax coding for each of the years involved, but I didn't know there was an error. It was only when I realised I should be claiming business miles that all this has come out. My view is they received all the correct info from my employers (via P11d), and I genuinely was not aware they were making errors in my coding.

Does anyone have any advise on what I may be able to do? This goes back to 2007, its ridiculous!

nonfoabove

I have done some searching and I am posting this if it is of any use to anyone.





If you have underpaid income tax or capital gains tax for the year 2008/09, and you are satisfied that HMRC have all that time had the information they needed to calculate your tax correctly but have simply not used it until now, you should ask them to consider writing off the underpaid tax – i.e. remitting it and not collecting it from you – under the terms of ‘extra-statutory concession A19’.

A19. Giving up tax where there are Revenue delays in using information
Arrears of income tax or capital gains tax may be given up if they result from the Inland Revenue's failure to make proper and timely use of information supplied by:
·[FONT=&quot] [/FONT]a taxpayer about his or her own income, gains or personal circumstances
·[FONT=&quot] [/FONT]an employer, where the information affects a taxpayer's coding; or
·[FONT=&quot] [/FONT]the Department for Work and Pensions, about a taxpayer's State retirement, disability or widow's pension.
·[FONT=&quot] [/FONT]Tax will normally be given up only where the taxpayer:
·[FONT=&quot] [/FONT]could reasonably have believed that his or her tax affairs were in order, and
·[FONT=&quot] [/FONT]was notified of the arrears more than 12 months after the end of the tax year in which the Inland Revenue received the information indicating that more tax was due, or
·[FONT=&quot] [/FONT]was notified of an over-repayment after the end of the tax year following the year in which the repayment was made.
·[FONT=&quot] [/FONT]In exceptional circumstances arrears of tax notified 12 months or less after the end of the relevant tax year may be given up if the Revenue
·[FONT=&quot] [/FONT]failed more than once to make proper use of the facts they had been given about one source of income
·[FONT=&quot] [/FONT]allowed the arrears to build up over two whole tax years in succession by failing to make proper and timely use of information they had been given.

kate269

I've just recieved a letter syaing I owe £600 for the tax year 2007/08, because HMRC sent several tax codes to my employers, and even gave me a tax rebate in 2007. Do I have to pay it back?

Is this not a slip up on their part? Can anyone advise?

Thanks