Underpaid tax

Mattsmummy_2

Hi
I worked full time up until Aug 08, and then took a career break until Jan 09, when I started working part time.
The Inland Revenue then asked for my P60 for the tax year ending April 09 which I sent and received back in May 09. I received a basic covering letter thanking me for sending it, and that was that.

Now, nearly a year on, I have been sent a letter saying that for 08-09 I underpaid £400 in tax.

Surely I should have heard something back last year, when I sent in my P60? I feel that I have done everything asked of me, and am miffed to now have to repay £400.

Where do I stand on having to repay this, when it is their error?

Many thanks

Pennywise

Firstly, you need to know whether they're right or not. At least half of their underpayments seem to be wrong so you shouldn't simply assume they are right. To help we need you to post your figures, i.e. gross earnings and tax from your job. You also need to tell us of any other income, such as job seekers allowance etc the likes of which are also taxable. Finally, we need any figures sent to you by HMRC along with their underpayment letter. We can then tell you whether they're right or not.

Mattsmummy_2

Thanks:

Total pay for the year (from P60) = £12,952.35

Tax Deducted = £1776.00-refund of £405.40 giving a total of £1370.60


Then on the underpayment letter, the figures are as follows:

Income = £12,952.00
Tax paid = £ 1,370.60
Flat Rate job Expenses = £ 60.00

Income after taking away deductions = £12,892.

Less total Tax Allowances = £6035

Income tax is chargeable on this amount - £6857.

Tax on £6857 is £1371.40

Tax underpaid is 80p

Plus tax already repaid for the year - £400.80

Tax underpaid = £401.60

Hope this makes sense to you!! Many thanks for your help

Gertie_Walker

This is wrong in a wacky way!
The tax due per the computation is £1371.40 - which is correct.
the tax you have paid net of the refund previously received is £1370 - almost the correct amount. I dont know why they have added back the repayment. You need to ring them and point out their comp is incorrect.

Mattsmummy_2

Thank you so much. As I was typing it all out, it did dawn on me that the figures almost balanced out!! I will get on to them straight away!!:T