Repaying Tax Underpayment

jwoo

Can anyone help?

I received a bill from the tax office telling me that I had an underpayment of over £6000! This has been calculated for 2008-09 and 2009-10 due to the fact that I had 2 jobs which took me into the 40% tax bracket and they claim this was not applied. I was paid through PAYE and assumed that my tax had been assessed by the office as I had had two jobs for several years and both employers and the tax office were aware of this.

I appealed against the decision, but they now claim that the underpayments stand as my employer only informed them of my tax return in for 08-09 in May 09, meaning that they have a year from 09-10 tax year to notify me of underpayments, not the year they are charging me for. Surely this is always the case and effectively means that the tax office has 2 years to reclaim tax?

During the period, I had also contacted the office several times, so they failed to act on information provided, but the only proof I have of this is that my tax code was changed several times.

I was totally unaware of any issues with my tax as I was paying through PAYE and had contacted them. To me this is the equivalent of buying a house, only to have someone come back and tell you that they didn't charge you enough!! I accept that I am liable for the 09-10 bill under the regulations and now only have one job, but the 08-09 bill seems wrong. Can anyone help me? This is now causing me so much stress worrying about how I will pay this, that I would really appreciate any help anyone can offer.

J

Mikeyorks

jwoo wrote: »

During the period, I had also contacted the office several times, so they failed to act on information provided, but the only proof I have of this is that my tax code was changed several times.

It doesn't sound as though the 'information (you) provided' related to the fact you had 2 concurrent jobs and excessive personal allowances between them?

Whatever ..... you can ask they consider ESC A19. It sounds as though you have done that and they have rejected it? You can appeal that decision ..... and they will review the case. Was that not in their letter.

Surely this is always the case and effectively means that the tax office has 2 years to reclaim tax?

They have 6 years. They're only issuing reconciliations for 2 of them at the moment. But you're confusing the number of years they can normally go back ...... with the provisions of ESC A19.

jwoo

Thanks so much for your reply. I did notify them that I had two jobs and at one stage, they changed my primary job to the alternative one at my request, so they definitely knew.

Do you think this changes anything?

Best wishes and thanks again for any help you can give.

Mikeyorks

jwoo wrote: »

Do you think this changes anything?

Not necessarily. Because the aspect at issue isn't the fact you had 2 jobs. It's the fact that the combined salaries pushed you quite significantly (with a £6k underpayment) into the 40% arena.

If that was the case before 08-09 ..... then you may have some leverage. But if 08-09 was the 1st year ........ then HMRC are within the guidance by declining ESC A19, as they would be unaware of the situation until comfortably within the 09-10 tax year.