HELP. I have received two P800 Tax Calculation forms. What do I do now?

electribem

Last Thursday I received two P800 Tax Calculation forms saying I owe £3000 in underpaid tax from 2007-2009. To say the least I was shocked and angry.

A bit about my background. I am a Locum Healthcare worker who uses various agencies to get contract work. The contracts may last weeks, months or years. I have been submitting my timesheet weekly to a 'tax efficient solutions' company called Argentia since 2008. Before that I submitted my timesheet through a company called Charterhouse Plc. In all these years I have never received any letters about owing any tax. So I'm wondering why is this happening to me now? Are the company's I've used to deduct my tax weekly, now and in the past, incompetent or unscrupulous in their accounting methods? Have I been on the wrong tax code perhaps?

I have emailed Argentia and asked why this has happened. I got a prompt reply back saying that my details have been passed to their accountant and that he will look into it for me. Thats was on Friday. I've heard nothing since. So I'm wondering what are my rights in this matter? How can I dispute this? Have HM Revenue & Customs got the wrong information on file? Trouble is I am still using the company to process my pay and so is another friend of mine. When I told her what was happening to me...she also became worried. Do I stop using them until this is sorted out? Any help, assistance or guidance as always would be much appreciated. Many thanks.

jennifernil

First thing to do is establish if HMRC have the correct information on your earnings, and whether the tax they say you have already paid agrees with your own records.

If the figures are correct, have they worked out the tax due correctly?

bekkithedevil

I also received two of these saying I owe over £2000. I've sat down and reconciled my payslips to what HMRC say I owe and found I only owe around £400.

Whilst the earnings part on the P800 was correct, HMRC had not noted that I'd paid around £1600 tax in one employment. I'll be calling them tomorrow to tell them such!

I'd suggest now's the time to do your own reconciliation. List all your P60 and P45 amounts for earnings and tax paid, and check that the total per tax year you calculate is the same as what HMRC think you've done.

When you find the difference this will help you calculate whether or not you owe HMRC any money

Hope you work it out soon - it's very stressful!

Bekki

electribem

Thanks for all the post so far.

I was reading the info in the yellow boxes of the P800 tax collection forms. This is what they both said:

1. This calculation includes an underpayment for an earlier year. The amount of benefit in kind in your PAYE code was lower than the amount taxable.

2. The reason for the underpayment duplicate personal tax allowances received.

Can anyone shed any light on what that lot all means? Who's fault is it?

jennifernil

1. You had paid too little tax in the previous tax year. You had some benefit (car, medical insurance, something) the full value of which was not included in your tax code.

2. Sounds like you were given 2 personal allowances by 2 employers.

Fault is more difficult to establish.

Did you hand over P45s when changing employers/companies?
Did you receive notices of coding and check they were correct?
Were the correct codes used? (check your payslips)
Have you ever sat down and added up your earnings and worked out your tax to check it was roughly correct?

You need to establish where things went wrong first. And then why.

electribem

Further to my initial thread, an accountant for Argentia has said he will look into to my tax position if I can provide payslips and P60's. Looked through my records and couldn't really find anything before 2008. So I called FPS/Chaterhouse Plc and asked if they could send me all my payslips up until the time I left them. Imagine my surprise when I was told I would be charged £140 for this service. Obviously I was not going to pay for that as I was initially told it would only cost me a maximum of £10. Strange how the price went up steeply in 20mins when I got the call back. So instead I was told if I pay £20 by BACS transfer I can get two 'statement of earnings' which I was told is like a P60. Is that true? What does a statement of earnings consist of and will the accountant favor these over actual individual payslips?

Tarasam

Have you spoken to HMRC yet, I would before paying for Statements of earnings.

Mikeyorks

electribem wrote: »

What does a statement of earnings consist of

As you've been told - it contains the same detail as a P60. It's not the same as individual payslips - it's a summary of earnings / tax for the year.

electribem

Thanks for your replies.

Mikeyorks to be honest I haven't spoken to the HMRC yet. Why? Basically because I didn't think there was much point. They have already made up their minds I owe a huge amount of money. But today I received another letter from HRMC saying I have to pay £1,400 by the 20th March. It just keeps getting better. So acting on that and what you've said I'll give them a call tomorrow and hope for the best. What should I say when I call up? Any advice would be much appreciated.

Mikeyorks

I think you're mixing two replies? I think it's essential you have the P60 data to check the P800s before ringing HMRC. Otherwise you're a bit in the dark?

As I am a little over how these 'tax efficient' companies operate? As Kellyshay works for HMRC then her reply may be relevant .... in that it may uncover issues you are unaware of? Personally - as a facts person - I'd be more comfortable with the P60 data first?

In future - you must keep them!

jennifernil

electribem wrote: »

Further to my initial thread, an accountant for Argentia has said he will look into to my tax position if I can provide payslips and P60's. Looked through my records and couldn't really find anything before 2008. So I called FPS/Chaterhouse Plc and asked if they could send me all my payslips up until the time I left them. Imagine my surprise when I was told I would be charged £140 for this service. Obviously I was not going to pay for that as I was initially told it would only cost me a maximum of £10. Strange how the price went up steeply in 20mins when I got the call back. So instead I was told if I pay £20 by BACS transfer I can get two 'statement of earnings' which I was told is like a P60. Is that true? What does a statement of earnings consist of and will the accountant favor these over actual individual payslips?

Hindsight is a great thing, but I have to ask......why do you not have your payslips? And your P60s. It does say on them to take care of them as you cannot get duplicates.

We keep everything for at least 6 years. I have a system with a stack of filing drawers, labelled, and I put stuff into the relevant drawer. Not exactly filing, but at least I know things are there to refer to if necessary. Even if it takes me a while to sort through everything in the drawer!

Every couple of years, or as required, I sift through things, clip each years stuff together, and shred anything older than 6 years.

Another way to keep stuff is to scan it onto your computer, and then save a second copy on a disc.

So, if you have not kept things, the sensible thing would be to get the Statements of Earnings, even if it costs a little, as without records you cannot challenge HMRC. They are the nearest thing to a P60 that you can now get.