Tax demand

danny69

Today I have recieved a letter (p800) and it states I owe £1010 in underpaid tax for 09-10 tax year. Within the last 2 months I have lost one of my 2 jobs and now earn £336 per month. I do live at home, but still have outgoings, bills etc. They are demanding the full amount in a cheque and will be contacting me after 31st december 2010. Obviously I am going to get in touch before this, but I am looking for advice. Last year I sent 2 p46's to one employer and 3 46's to the other employer. The 46's stated I have two jobs and both continued to give me a full taxfree allowance. Although I have no concrete evidence that I sent these out, what view would the taxman have? I have given the correct information to both of my employers, yet they have continued to deduct tax incorrectly. What are the important facts that i should state in my letter to the HMRC? I am very surprised they are not prepared to change my taxcode to accomodate my circumstances, but if they do indeed demand a lumpsum cheque then i have no means in which to pay it.

chrismac1

You are right, you should be given more time to pay. This one should be taken off your PAYE code over the next tax year or even 2 tax years in my view. Your task is to find someone decent enough in HMRC to agree to this, which won't be easy...the helplines have to be first port of call.

danny69

Okay, thanks chrismac1. I was thinking of sending a letter detailing everything because that way it would be clearer? Unless they change the payment terms then i won't pay it because I dont physically have the money. I shall ask in my letter for revised terms and see where i get.