Tax under-payment notification - help!

MimiJane

Hi all,

I recently received the above to the tune of £700 total (2008-9 and 2009-10). Apparently I've been on the wrong tax code for the last few years (though I've no idea why). I retired early due to ill health 12 years ago and have been on IB since then. Doing some Internet research, it appears I am in one of the "target groups" due to my circumstances.

Anyway, I wrote to them asking them to check with my pension provider to find out if they were at fault and told them there have been no changes in my circumstances since I took retirement; I have not worked and cannot understand why they've written to me. I received a letter back saying that I do owe the money and the A19 Concession does not apply (no mention of my pension provider).

I've written to them again asking for a full explanation as to why exactly I owe this money, but fully expect them to write again saying they are going to collect due monies in the next tax year.

Are they obliged to give me a "full explanation"? Am I perhaps liable?

Any help/advice greatly appreciated.

glider3560

Perhaps post the figures here from the tax calculation and then your actual figures. Someone will be able to help you work out where the underpayment came from.

MimiJane

Thanks for the reply.

I don't disagree with the figures they've sent to me for PAYE and IB for the past couple of tax years in question, but don't understand why my tax code altered a few years ago when my circumstances did not change. I'm totally perplexed ...

jem16

MimiJane wrote: »

Thanks for the reply.

I don't disagree with the figures they've sent to me for PAYE and IB for the past couple of tax years in question, but don't understand why my tax code altered a few years ago when my circumstances did not change. I'm totally perplexed ...

What was your tax code and what did it change to?

MimiJane

There's been a slight increase every year ... my records go back to 2005, when it was 143L.

There was a "big" jump though in 2008 from 191L to 272L in 2009 and, from April this year, they've put me on 162T.

Hope this helps ...

jem16

MimiJane wrote: »

There's been a slight increase every year ... my records go back to 2005, when it was 143L.

There was a "big" jump though in 2008 from 191L to 272L in 2009 and, from April this year, they've put me on 162T.

Hope this helps ...

Obviously the big jump has caused the problems but without having figures we could not hazard a guess why.

What did your P2 coding notice for 2008 and 2009 say about the change of tax code?

MimiJane

I'm not sure what a P2 coding notice is ... is it a tax code notification? If so, I've had two this year in January ... 485L for Job Centre plus to use the code for my IB and and another one giving code 162T for my pension provider to use, both for the remainder of this tax year. The last one I had was for the year I finished work. No other reasons are given.

Thanks.

jem16

MimiJane wrote: »

I'm not sure what a P2 coding notice is ... is it a tax code notification?

It is - it usually explains how the tax code has been made up and would give allowances and deductions so you can check if it's correct.

If so, I've had two this year in January ... 485L for Job Centre plus to use the code for my IB and and another one giving code 162T for my pension provider to use, both for the remainder of this tax year. The last one I had was for the year I finished work. No other reasons are given.

Thanks.

So this year they have given 2 tax codes and split the normal tax code of 647L into 2 separate ones which add up to 647L.

You only mention one tax code previously - each one lower than the normal for that tax year. Was your IB paid gross and tax taken through your pension? Normally you would expect to get a coding notice each year when your code differs from the norm.

MimiJane

Yes, IB was paid gross and tax deducted from my pension (or should have been!).

Thanks for sticking with me on this jem ... I really want to get to the bottom of it as it's a huge amount (to me) to give them.

jem16

MimiJane wrote: »

Yes, IB was paid gross and tax deducted from my pension (or should have been!).

That's fairly normal procedure. I would have epected a tax coding notice each year though so you could check the figures.

Thanks for sticking with me on this jem ... I really want to get to the bottom of it as it's a huge amount (to me) to give them.

Can't really help much further without figures for at least your IB each tax year. Your tax code of 272L in 2009 would suggest IB of £3750pa - how close is that estimate?

MimiJane

IB would amount to about £1100 more than that figure ...