Tax Underpayment - Incorrect info in letter

BellaBoo1980

Hi all

Apologies if this issue isn't new but I could really do with some advice.

I've received a P800 saying that for the Tax Year 07/08 I 'had two employments at the same time and both employers were applying a PAYE code giving the full tax free allowances' and that therefore I need to pay them back £400.

The information is irrefutably incorrect. I only had one job in that year. I started it as a temp through an agency and was then, after 5 months, given the job permanently by the company.

Could this be where the problem lays? As in...could the Recruitment Agency have cocked up somewhere?

I'm going to ring the Tax Office in the morning and ask for the information they have and inform them that I didn't at any point have 2 jobs at once.

If anyone has had any experience of this your advice would be very gratefully received. I'm a bit lost as I have very little experience in dealing with Tax related issues.

Thanks in advance.

EDIT: I spoke to HMRC this morning and they say that the Tax Free Personal Allowance I was given in the first half of the year (when employed by the agency) was then given again by the company once they took over my contract (Apparently they didin't use my P45 info correctly).

HMRC are sending me out all the information. They say I can then appeal the decision.

Where do I stand? If the mistake was made by the company am I still financially liable? Should I contact either of the employers asking for info?

Apologies for rambling. Can anyone advise me please?

susanbetty

I have exactly the same problem. I have been told I underpaid by almost £800 for 2008/9. I finished one job then started the other, but they said I have received pesonal allowance for both jobs and have to pay them back in installments over this year.

I really don't understand how one place of employment would give personal allowance upfront for the whole year. Surely it would come as installments each year and would cease when you stop working there.

Rosco30

I have the exact same letter for the exact same tax period 07/08. Called HMRC this morning to question it and was told to send them my P60, luckily I kept it and it has all the correct tax I paid. This info on the letter is completely wrong they said I only paid £1600 tax and got paid £34000 which is way wrong (P60 proves its wrong). The person I spoke to asked if I had moved jobs, which i havent (worked for the same company for 13 years), had two jobs which I dont. Its a complete joke....

Send them your P60 recorded delivery and let them choke on it!

oh and my letter is asking for £4444!!!

Tarasam

Rosco30 wrote: »

Send them your P60 recorded delivery and let them choke on it!

oh and my letter is asking for £4444!!!

Nice attitude, this is not HMRCs fault, if an employer has provided incorrect info to them, its the Employers fault. HMRC will sort it out for you once they have the figures to prove the error. Recorded delivery wont make anything happen any quicker for you.

Rosco30

kellyshay wrote: »

Nice attitude, this is not HMRCs fault, if an employer has provided incorrect info to them, its the Employers fault. HMRC will sort it out for you once they have the figures to prove the error. Recorded delivery wont make anything happen any quicker for you.

I apologise for my attitude but getting a bill for £4k upset me slightly. Sending it recorded just incase it gets "lost".

Hopefully they will sort it quickly.

Mikeyorks

BellaBoo1980 wrote: »

(Apparently they didin't use my P45 info correctly).

HMRC are sending me out all the information. They say I can then appeal the decision.

Where do I stand? If the mistake was made by the company am I still financially liable? Should I contact either of the employers asking for info?

I've bolded the relevant bit ..... that's what you do. Do not contact the employers .... you'll be stirring up mud unnecessarily.

Under normal circumstances HMRC won't switch the liability to the employer unless they're known to be careless with their PAYE. But this is 07/08 (the first underpayments issued in bulk for that year) .... and I suspect HMRC will be more amenable than for the 08/09 and 09/10 years.