yet another underpayment.....advice needed please

starbucs

...I know this subject is probably getting boring but I received a demand for underpaid tax for 2008/9....£469.80.

I think there may be underpayment...I have never thought it necessary to check HMRC's calculations. What I would like to know is the validity of the claims in the press that HMRC are out of time to claim this money from 2008/9 and that a letter to them could resolve this demand in my favour.

I'd be so grateful for any thoughts as I am now living frugally on my government pension and a very tiny works pension and would find it extremely hard to pay back almost £500

Thanks

dori2o

How has the underpayment arisen?

The out of time rule would only apply if HMRC have not acted on information received within 12 months of the end of the tax year in which the information was received.

So if you contacted them in 2008/09 to advise a new income, or a change in circumstances, and they have not acted before 5 April 2010, then you may have a case.

If you have never contacted them, and they have done the assessment based on the P60 information received in May/June 2010,then they have until 5 April 2011 to deal with this.

If you have not already done so, contact HMRC to find out how the underpayment has arisen.

starbucs

Thank you...I'm not too well up on tax issues.

I started to receive my government pension in April 2004. At the time I was working part time and also received a small pension from a previous job. I had 2 tax offices and paid tax on both incomes....this is why I never thought it could be wrong. Nothing changed in my circumstances from 2004 to 2009 when I retired from my job. Could this be construed as lack of communication between tax offices?

My total income now is less than the age allowance....around £8,300

Gertie_Walker

It would help us if you could post the pay and tax for all your pensions/pay for 08-09 and the code numbers used against each source, together with the copmputation on the P800.

starbucs

I've gone through the relevant p60's and tax codings and I have underpaid. What I really need to know now is, as I have paid tax on the two incomes...albeit , not enough, does the fault lie with HMRC's non communication between offices? And do I have a case to appeal against the underpayment?

Thanks

Gertie_Walker

You can only appeal if the figures are wrong.
If you are trying to rely on ESC A19, then you need to show that HMRC had information that your code number was wrong and failed to put it right. We can advise if we can know what codes were issued/used against each source.

Pennywise

Gertie_Walker wrote: »

You can only appeal if the figures are wrong.
If you are trying to rely on ESC A19, then you need to show that HMRC had information that your code number was wrong and failed to put it right. We can advise if we can know what codes were issued/used against each source.

If this goes back to 2004, then the ESC should apply one two grounds. Firstly, HMRC knew you had the different sources of income because they'd have been sent P60s. Secondly, it's a clear case of a recurring error year after year. I can't possibly see how HMRC could reject an ESC claim when there are so many years involved. Nothing "new" happened in 08/9 or 09/10. It's a long, long time, far past the ESC deadlines, since your additional source of income started. HMRC can't just look at a single year in isolation. In your case, make your ESC claim. HMRC will almost certainly write straight back to refuse your claim (they seem to be doing this automatically without even looking at them), then you have to lodge a formal appeal.

starbucs

thank you all so much. I have got all my paperwork together and tomorrow I'm going to draft a letter to HMRC. The more I look at it the more of a mess it seems.
I have 20 different codings between 2003 and 2010 and they're from 3 different tax offices. I just blindly thought that the end result each year was correct...old fashioned trust in the authorities I'm afraid.

Tinytots

Have just received underpayment demand for £2500 for tax years 2008/2008 and 2009/2010. I semi retired from the Home Office in 2006 and am in receipt of a Civil Service pension. I then became a re-employed pensioner working part time of 20hrs for the Home Office.
HMRC claim that the tax code on my pension was incorrect and that this is where the shortfall originates from, not my part time employment, apparently HMRC were not informed of the starting of the pension. The company acting for my Civil Service pension claim that they have always used the code supplied to them from HMRC and that they are not responsible. I intend to appeal this decision. Any advice welcomed.

Mikeyorks

Tinytots wrote: »

Any advice welcomed.

Did you complete a P161 to notify HMRC of your anticipated income when the pension was initiated?

Pennywise

Mikeyorks wrote: »

Did you complete a P161 to notify HMRC of your anticipated income when the pension was initiated?

Or put another way, did your new employer send HMRC a P46 to tell HMRC that you'd started working with them. If so, and assuming HMRC had already known about your pension, then the ESC A19 should stand as HMRC became aware of your new source of income and failed to act on that information. HMRC can't argue the ESC doesn't apply solely because you didn't tell them - the wording of the ESC clearly says that "information" can come from a variety of sources and mentions "your employer" so if you can prove that HMRC were aware of your new employment by the submission of the P46 (i.e. did they send any tax code notices to you and/or the employer following it being submitted), then you should make a claim for write off under the ESC.