£2000 tax bill

mcctank

Ok so heres the problem i just got a letter from the tax man stating i owe them £2000 pound. So before i ring them to have it out i thought i would see if anyone on here has any tips for me or just good advice for dealing with them.

my main gripe is that i earn 13 grand a year after tax with no company benefits. so giving them another 2 grand for the last 2 years means ive taken home 12!

now heres the tricky part were i think its gone wrong i work to part time jobs a cleaner for 10 hours and a caretaker for 32 hours a week both paid by portsmouth city council. So my guess is they have messed up and not taken enough tax from me?

if its is my mistake i have no problem in with paying it back but would they agree to a certain monthly sum rather then wanting it all at once??

Sorry for the essay any advice is appreciated thankyou. mcctank

chrismac1

Post up the details from your P60s - Gross for PAYE, tax code and tax paid in each job. Then we'll see if they've got it right.

suso

2000 is the dividing line for collecting it through your tax code or requesting a lump sum payment.

1999.99 will be collected through your code (if there is enough income to do so. ) 2000.00 and over is requested as a lump sum payment.

On the P800 calculation does it mention whether it is going to be collected through your code or not.
If it does, then it will be collected in equal amounts (interest free) through the course of next year, ie if weekly paid then divide the amount by 52 or if monthly paid then divide it by 12.

If it doesn't then after Dec 31st HMRC will be writing to you requesting payment, if it is going to be causing hardship to collect it all in one year then write into the office that issued the P800, mark your letter prominently as "hardship" give details of your incomings and outgoing s and they will see if they can spread the repayments over 2 years.

mcctank

thanks for your reply suso it doesnt mention when it will be taken after reading the p800 the total amount is £1316 but it does not say they will take it out of my tax so im guessing i have to arrange the payment. so ive looked at my p60 and my wages

my tax code is 647l im a single man living on my own.

my gross wage is £16839. 13575 from the caretaking and 3264 from the cleaning

now this is where it gets complicated i get two payslips from pcc now the cleaning just gives me the amount ive earnt and my caretaking payslip includes all my tax and ni so im guessing this is were i have gone wrong as i presumed that the council for simplicity reasons just took all the tax from the higher wage

chrismac1

2,073 is your tax bill - how much tax (not NI) has been deducted?

It seems unlikely to me that you owe what you say you do, on the basis of your post.

mcctank

Doh sorry forgot that bit in total i have paid £1200 in tax

pughgra78

as a quick approximation i'd expect you to have to pay just under £2k in PAYE for the full year - so 2k seems a bit steep. Is this a catch up for just one tax year or could this include previous years of underpaid tax?

chrismac1

Still doesn't look right to me. For each job please post:

Gross pay for PAYE
PAYE tax paid
Tax code

from the p60s. Then we can see what your bill should be and identify the source of any error. From what you've posted so far you only owe 873 so post the details and we'll see where the 1,316 might have come from.

mcctank

ok

the paye incomes are £13525 and £11360

my tax code for both jobs is 647L

and the total amount of tax i have paid is £1233

chrismac1

You're confusing me now, as that total income is 24,885 and the tax due on that would be 3,682 - also if both jobs applied 647L then the first job should have deducted 1,410 and the second one 977 if you'd been working there throughout the tax year 09-10. You should have told the second job about the first one, then you'd have had a BR code applied and paid the right amount of tax.

So if it should have been 3,682 and you've paid 1,233 you should owe 2,449.

mcctank

sorry im not very good with numbers my total paye is 16 grand a year before tax, i didnt think i needed to tell the council about the second job as both are with the council.