Underpaid tax...again

Tarasam

You can request that HMRC spread the underpayment over a longer period of time upto 3 years, it just takes a telephone call and it'll be done.

daddycoolio

bunnyfuller wrote: »

Hi all,

Received a lovely letter from HMRC saying I owe them 931 each yr for 2008/9 - 2009/10.

I immediately phoned and the first person I spoke to sounded almost astonished that I would want an explanation for how it happened, and accused me of not informing them of pay rises (I work for the police and am pretty sure they inform them!)

So, digging a bit further it now transpires that HMRC say my RAF pension provider failed to use the codes HMRC issued them. Xafinity, of course, say they used exactly what HMRC told them to.

I am going with HMRC for now, and with that tack have looked into where it says if employer/pension payer fails to apply correct tax code HMRC should recover it through them, and not the person.

Letter is written and ready to go by recorded delivery Monday, so wish me luck.

Any experiences with this would be welcome

Nic

Hi,
I have exactly the same letters except mine are for £901 per year for 2008/9 and 2009/10, a total of £1801. I have an annual salaryand two pensions. My salary and one of the pensions was calculated exactly right. The other pension, RAF pension from Xafinity, is the culprit. As I recieved these notifications yesterday, I have not contacted anyone yet, but from what I can see from my paperwork, Xafinity were following the coding instructions from HRMC to the letter.

I shall l forward to seeing haow you get on.

All the best

daddycoolio

Hi

just a thought but both of our problems are concerned with RAF Pensions dealt with by Xafinity!!

Is there anyone else with tax code problems that are with Xafinity?

Please let us know if you do

Mikeyorks

daddycoolio wrote: »

Is there anyone else with tax code problems that are with Xafinity?

3 of you, so far, on this thread.

It's probably irrelevant - but they were involved in the NHS overpayments a couple of years ago :-

http://www.guardian.co.uk/money/2008/dec/16/public-sector-pensions?intcmp=239

bunnyfuller

Well,

the saga continues. Xafinity swear blind they applied tax codes HMRC supplied, HMRC says they didn't. Anyone in same position as me, ring tax office to tell them to send Xafinity another Tax coding or more arrears will build up between now and Apr 2011 - now we're in possession of the correct information it will be us liable if we do not make efforts to act on it. I still intend to send a letter challenging, although today's lovely helpline lady wasn't even aware of the clause that says they may seek recovery from pension provider/employer if they've applied codes incorrectly. Will be following up with Xafinity in next couple of days to see if HMRC have issued them another coding.

Looking around the net, googling xafinity/underpaid tax it seems there are a few of us in this situation, much like the NHS situation mentioned previously. Does anyone know what hoops you have to jump through to get the repayment period extended if needed?

Nic

Mikeyorks

bunnyfuller wrote: »

I still intend to send a letter challenging, although today's lovely helpline lady wasn't even aware of the clause that says they may seek recovery from pension provider/employer if they've applied codes incorrectly.

It's the basic standard that the employer is responsible for the correct operation of PAYE. However, for HMRC to rule they must pay the underpayment there needs to be evidence of systemic failure rather than just a very small percentage of cases. A bit more at Note 2 of the 'What Happens Next' leaflet with your P800? Also worth looking at this (and following the embedded links):-

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

Does anyone know what hoops you have to jump through to get the repayment period extended if needed?

Should be few. This is the first year of these mass 'reconciliations'. And, as there are 2 years involved ...... it's inevitable a number of peple will be caught with 'bundled' underpayments and HMRC should be more sympathetic than when it turns into a single year event. The post from Kellyshay (5 above) suggests that is how HMRC are playing it. Also a bit more on 'How will the underpayment be collected' on the 'What Happens Next' leaflet.

Meadows

My husband has just received the dreaded tax letters, the amount they say he owes for the last two years is just shy of £3,000.

montezumas

Yesterday received letter from HMRC saying I owe them £4120 for years 2008-9 and 2009-2010 . I work in small family business of approx 12 part-time staff and turned 60 two years ago. I started to claim my pension of £136, now £138 per week paid into my bank account and carried on working. I was advised that my tax code would change but nothing ever showed up on my weekly wage packet - ( yes, we get money in a wage packet each week ! ) I really gave it no thought since the mysterios workings of Tax are beyond me. I trusted that my employer would do whatever was necessary. Problem is I am planning to retire just after Christmas and partner and I are in process of selling our flat and buying place in Ireland. There is no spare cash. We are committed in both directions. Iwill live on my £138 per week in Ireland and can't see how I can possibly afford to pay anyrhing back out of this. Can anyone advise ?

montezumas

Hi Mikeyorks I am new to forums but desperate. Just posted amessage about my circumstances but interested in your comments about employers failing to implement correct tax code. What can their defence be? Surely in a small family firm of only 12 staff ( A shop ) it can't be too hard. I read the ' What happens next' bit as you suggested

Gertie_Walker

Did you receive a notice of coding showing a coding change to include your pension? If so, did you check that your employer was using that code?
If not, did you remind HMRC that your code had to be changed? How many times? What was their response?