Underpaid tax!!! Letter from inland revenue

maddipops

Ok so I was one of the unlucky ones who apparently hasnt paid enough tax for 08-09, apparently underpaid by £744.

The letter I've received doesnt talk about when they want the money back by, it simply tells me why i've underpaid.

Is this recoverable? was speaking to someone at work who said that in actual fact they've agreed not to pursue people for these underpayments.

It is strange that they've not put on the letter when they want the money by, I couldnt afford to pay it back anymore than £50 a month.

chrismac1

First off, is it right - so far I reckon about half of these have had blunders in them. Post up your details for 08-09:

Gross pay for PAYE
Tax paid
Tax code

for each employment for which you either had a P45 or P60.

Lost2

I had one of those letter some months ago
and I owe £1600 :eek: I only do a part time job
but they went back 2008-09 and 2009-10

from what I have been told they will start taking money back in April of next year and the longest period of time to pay back will be 3 years.

maddipops

Well that helps, as it gives me a few more months before I have to cough up.

I'd be quite happy paying it over 3 years, as that's something small like £20 a month, however I've read that if the underpayment is a year old and it's purely their mistake then they have to consider writing the amount off? A19 or something?

Gertie_Walker

As chris says, we first of all have to check that the demand is correct as many of them are not. Only then can you decide whose fault it is and whether ESC A19 applies.

Mikeyorks

maddipops wrote: »

The letter I've received doesnt talk about when they want the money back by ...............It is strange that they've not put on the letter when they want the money by

Read the (right hand) margin references on the P800 ...... and back to the Notes / What happens Next - that were enclosed?

Also worth reading the HMRC website data :-

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

Lost2

mine is correct but I don't know how they could have made the mistake

Dartmoor1

I just recived my P800 saying I underpaid £2504 in total for 08/09 & 09/10. Looking at the figures they've used I think they're correct in their calculation. I receive a small Armed Forces pension, in addition to a MoD salary - but it seems my personal allowance has been taken into account for the pension and salary tax calculatins, so in effect my persnal allowance (amount earned without being taxed) is double what is should be. My point is, HMRC have been fully aware of my salary and pension income at all times, but for some reason have chosen not to correctly calculate my correct rate. Do I have grounds to appeal, seeing as HMRC had all the information they need? I assume pensions get taxed at the standard rate of tax?

audscott68

hi dartmoor1
my husband (ex armed forces) has received exactly same type of letter/demand this morning for £3000, ive spent morning in tears, he works in singapore and is away for a month, got hold of him and he phoned tax people and reason is exactly same as urs, seems he didnt pay 40% tax on his pension. how can this be our fault?? upon leaving forces my husband was in contact with HM revenue quite a few times to check his tax code was correct and each and every time they confirmed it was. does anyone have any ideas where we should go from here? appeal and if so how??
thanks
audrey

Dartmoor1

Audrey
Yes, exactly the same circumstances as me. My tax was messup up a little when changing jobs in June 2009, so I've spoken to the tax office (which is no easy thing!) on at least 4 occasions, and discussed with them about personal allowance against salary or pension. Xafinity Paymaster and MoD both inform HMRC exactly what I earn, but it seems they've not been able to join the 2 together until now. Your tax code is most likely correct (as is mine), it's just that HMRC apply it to both incomes separately, rather just 1 of them. I'm going to write to them with copies of P60s from MoD and Xafinity, proving that they had the information they needed to tax me at the correct rate over the past 3 years. Both P60s have my NI number, so it's not as if they can't work out I'm the same person, surely?

This isn't the first time the Gov has messed up with me either - when I left the RN I still owed £1700 from a Long Service Advance of Pay (for a house deposit) so I sent them a cheque for that amount. 2 weeks later it was returned saying I didn't owe anything! So I banked it, only to get another letter 12 months later saying an audit had uncovered the fact that I still owed £1700! Unbelievable.

As Audrey has said, any advice regarding our response to HMRC would be greatly appreciated. Thanks.

peanut_butter

They wanted nearly £1,000 from me...

In the letter i got, their figures were well and truely incorrect, the only one that was correct was the amount of tax paid, they owe me over £2,000 its been 5 weeks now - and still no sign of the money after many complaints. One of the managers even admitted the mistake and could see that anyone reading the figures THEY HAVE its common sense that they are incorrect

And with a further 100 people from my job, it shows even more that its incorrect -

Yet , im still getting no where... Its as if they are dragging this out as long as possible -