Underpaid Tax - P11D Problems

Alan_T_2

I've been one of the unlucky ones to get a letter from HMRC advising that I have underpaid tax for Tax Year 2009/2010 to the tune of £435.40.

My taxable earnings are made up of salary, incorporating bonus, and employers loan benefit (concessionary rate on mortgage). I received a P11D on 28th May indicating that the benefit for my mortgage and when I do some rough calculations it appears that the difference in what tax I paid and what they say I should have paid is down to the tax due on the employers loan benefit.

This is where it starts getting messy as my employer has submitted the P11D in time for the 6th June cutoff, however HMRC have only just got round to actioning it.

I now face the prospect of paying an extra circa £40 per month tax next year because of HMRC messing up. I'd have had no issue in this tax being collected when it was due, but given that neither me or my employer appear to have done anything wrong I'm pretty annoyed.

Is it possible to avoid paying this due to their error?

jennifernil

I don't see how this is an error. They are acting on the information received, and within the time allowed.

opinions4u

You knew you had a tax liability. You could have saved money to cover it. You are not Worse off so you have no complaint.

Mikeyorks

Alan_T wrote: »

This is where it starts getting messy as my employer has submitted the P11D in time for the 6th June cutoff, however HMRC have only just got round to actioning it.

The cut off is 6th July.

As you were aware, from your copy of the P11D if nothing else, there were taxable benefits accruing you could have contacted them for a revised Code? As it is they're well within their timeframe for 'official delay' (they have up to Jan 2012) so there is no prospect of them writing it off.

Alan_T_2

Thanks everyone for your responses.

I guess where I was coming from was that I'd assumed when they received this information in June that it would have been processed at some point prior to now.

I have no issue in paying what I'm supposed to pay, but had assumed that my tax code had already included this as per previous years as the mortgage isn't new and there has never been any previous problems. As I'd assumed that it would be correct as per previous years I'd also assumed that the money for this was included in the tax that I had paid to date and thus didn't have the need to put funds aside to cover this.

Didn't appreciate the time period they are allowed, just felt that sitting on the information for 7 months made it an error.

Mikeyorks

If the preferential loan is of long standing then the 'benefit' tends to operate basically a year in arrears. So there should be an existing benefit deduction in your 09/10 Code. Was it 647L or lower than that?