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Tax Demand
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madeforidiots
Posts: 26 Forumite
in Cutting tax
Hi
My dear mother has been one of those lovely people to receive that always wanted present from HMRC just after Xmas... a tax demand, £3,000.
My mother has:
2 old council pensions (one for her, one for my late father)
Widows pension
A small job
She fills in her tax return every year like she should.
However, it seems HMRC told the pension provider 2 tax codes to take tax from, and the pension provider took the basic rate (BR) of tax.
What can we seriously do about this owing to the fact she earns under £15k a year before tax?
My dear mother has been one of those lovely people to receive that always wanted present from HMRC just after Xmas... a tax demand, £3,000.
My mother has:
2 old council pensions (one for her, one for my late father)
Widows pension
A small job
She fills in her tax return every year like she should.
However, it seems HMRC told the pension provider 2 tax codes to take tax from, and the pension provider took the basic rate (BR) of tax.
What can we seriously do about this owing to the fact she earns under £15k a year before tax?
0
Comments
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Post the full calculation here and someone will check it for your mum.
Which year(s) does it cover?0 -
It could also be useful if you could tell us if she is + or - 65.The only thing that is constant is change.0
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madeforidiots wrote: »She fills in her tax return every year like she should.
Curious then that she would have a PAYE underpayment (P800)? Is it an SA statement?
On £15k even with the basic allowance the tax due is just £1705. So a £3k underpayment - even if over 2 years - is difficult to envisage? In particular if both pensions were subject to 'BR' .... which means 20% was deducted from everything paid.If you want to test the depth of the water .........don't use both feet !0 -
Maybe it is actually £15k earnings, PLUS the 3 pensions.
It is not clear either way.0 -
And maybe HMRC have doubled up again.The only thing that is constant is change.0
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