tax bill arghhh

no_pennies

hi wonder if anyone can help , hubby recieved a tax bill this morning saying he owes £1780 for 2009-2010 and £854 for 2008-2009 he gets a small pension and a small wage i think the problem is that he should have been paying 20% on both incomes is this right we thought he just payed 20 % on the pension and normal tax on his wages wich has what has been happening (apart from some time when he got the pension untaxed) we are already in financial difficulty and are in a dmp im stressed to hell to think ive got to find more money from somewhere . question is should he have been paying 20% on both incomes thanks in advance

Mikeyorks

no_pennies wrote: »

question is should he have been paying 20% on both incomes thanks in advance

Yes - but only above his personal allowance. You will need to post the details from the P800s if you want someone to check them and attempt to see where the underpayment(s) have arisen. Also the Code Numbers in operation for 08-09 and 09-10 (wage and pension ... if paid seperately) would help .... either from payslips or P2(Coding Notices)

no_pennies

thanks mike will dig them out and post later

no_pennies

right have rooted everything out and unfortunately it seems right (only thing is its £1797.60 in total underpayment didnt realise they had added the 2008-2009 underpayment to the 2009-2010 bill ) please everyone check if you have a pension or two wages ect that your tax is being collected correctly dont be like us and just assume its all ok and they must know because its the tax man !! i will wait for the next letter then beg for help in repaying this money wish me luck - doesnt it always seem that when youve got nothing then someone wants more sob sob

Mikeyorks

no_pennies wrote: »

i will wait for the next letter then beg for help in repaying this money

As it's under £2k in total ...... aren't they offering to Code it out? The bit I've italicised below may be a factor?

If you have underpaid you will need to make additional payments through your Pay As You Earn (PAYE) tax code from April 2011 provided the payment due is under £2,000 and you have enough income to collect the amount.

If not coding it out - read the first bullet on Page 2 of this (you have a copy with the P800) and contact them first?

http://www.hmrc.gov.uk/p800/flyer.pdf