Tax Underpayment from HMRC. Could it be related to Nil Tax code during BR?

Holes_in_my_pocket

I believe it is a !!!! up

kepar

My wife received one of these letters on friday, claiming she owed nearly £2000 in under paid tax. After checking all old pay statements it was obvious that the HMRC were trying to claim the tax for the nil tax months. After spending over 30 minutes on the phone and finally got through. She explained the situation, the chap at the other end was very helpful and said it was a mistake. Also he added that as we all know that any tax claimed by HMRC for the financial year you go bankrupt gets paid into your pot for the creditors. He further stated that she had nothing to worry about and he would be sending out a new letter to that fact.

Judging by his responses(it was on speaker phone) my wife wasn't the first, second or hundredth person to ring up. If you have got the patience you need to ring up and get it amended.

I am sure there will be some br's out there who won't realise that they do not have to pay and will cough the money up.

Holes_in_my_pocket

I got through to tax office and its a mistake , they going to retify and send a letter to confirm

Angiepange

Holes_in_my_pocket wrote: »

I got through to tax office and its a mistake , they going to retify and send a letter to confirm

Thanks Holes

Did they say it was related to the Nil Tax?

Holes_in_my_pocket

I told i was bankrupt then and on a NIL tax code they said as i was bankrupt they will retify it but didnt actualy say it was a mistake

Angiepange

Ok thanks Holes

It sounds like its either a mistake with nil tax situation or the general underpayment as suggested by Debtinfo. We havent heard anything back yet so hubby will ring again when he gets in from work. Sounds like the BR will protect us anyway.

He also had notification of an overpayment of £200 from the tax year before 08-09. Does anyone know if he would be entitled to that refund or if it would go to the OR. We have been discharged since Aug 10?

sugarbabe-47

Oh Angie - you got me worried now -I received a letter and a statement saying I owe 2000!!! Got it on Saturday morning, but not had time to deal with it yet. I was B/R in Nov 2008 to Nov 2009 and really I need to get it sorted. I will check later when I get home from work
I remember I had to sign a release form so tax already paid could be released to my O/R. That was in March 2009. As I am P.A.Y.E I assumed everything was sorted??? Hmm I will be back here later to check and see whats going on.

sugarbabe-47

Right just come off the phone to Tax office- as soon as I mentioned I was B/R in those years he checked the info and apologised that this was an error and no human intervention had occurred in sending these calculations out, my details are being sent to someone else to check and adjust and they will send out as soon as ....not good though as previous poster said, what about those people who were B/R and dont do anything and pay!!!!!
Omg!! This needs to be brought to someones attention on these forums to warn others who were B/R in that year!

alastairq

they tried the 'underpayment' one on me last spring....

All was sorted toot sweet....it 'appears' the errors are linked to the transition [change over] between the old tax computing system, and the new ...all-singing-all-dancing' one.

I posted of my experiences early on this year....seemingly, the old system couldn't really cope with NT and BR...since it apparently pre-dated the NT system coming into force.

In the midst of a hissy fit, the old system would create an entirely new file for each BR individual.

One's tax records then got duplicated....but nobody realised at the time what was happening.

Once the new system was up-and-running, it found all these duplicate files from the old system, and naturally presumed the sums noted were 'owed'..so sent out the letters.

All starts boiling over when it realises each person cannot have more than one tax file........

so needs human[e] intervention to sort out the mess...

Angiepange

Well my husband contacted the tax office again today.

His query had been passed to another team and we are to await a phone call from them which could take up to 4 weeks :eek::mad:

When he mentioned his BR again the person said in that case some letters have been sent out wrongly and shouldn't have been sent out, but couldn't say for definite if that was the reason he got his notification!

So just a waiting game now to see what they say.