HMRC P800 x2 received today - info please

minty1978

Hello,

Today I was the 'lucky' recipient of 2 P800 Tax underpayment letters.

The first is for Tax year 2009-2010, which states I underpaid £1311. They have ammended my Tax code in order to reclaim that amount of the next year.

The second, and more concerning letter is for the tax year 2007-2008. Again, stating I underpaid £1197.
The wording of the letter confuses me slightly: 'I have now made the necassary amendments to the Tax Calculation previously issued for the year shown above.'

It doesn't say that I have to pay it in the letter, so I assume they will send me another letter with ways to pay.

What I really want to know is, as the mistake was so long ago, if they do ask me to pay up for the 07-08 shortfall, do I have good grounds to use the ESC A19 that i have read about?

I am going to call the Tax office on monday, I just want to be prepared with a few things I can say to them.

Thanks in advance.
Minty

System

First of all, before you call them, have you checked that the figures used in the calculations is correct? Look out your old P60's, P45's, P11d's (if you have company benefits) and check the calculations.

Secondly ESC A19 only applies if HMRC had all the relevant information and failed to use it in time to prevent an underpayment occurring so you need to find out how the underpayment arose. You can ask them to provide a written explanation or make an appointment at your local HMRC enquiry centre and ask them to show you what information was received and when.

Thirdly the underpayment may be down to an employer/pension provider failing to use the correct tax code so you can ask if that is the reason also.

minty1978

thanks for the info pam.
I think the figures are correct, in 2007 - 08 I had a company car, but i believe the company did not inform the tax office straight away.

from reading other posts in the forum, it looks like the total owed might be the £1311, which includes the £1197 from 07 - 08.

on both of the breakdown forms, where the total owed is listed, there is a number 15 next to the final figure. number 15 on the 'help sheet' states:

'15 - Tax underpaid - if you have received P800 tax calculations for more than one year, the total amount due for all years will be shown at Note 15 of the P800 Tax Calculation for the latest year.'

so hopefully I only owe £1311 and not the total £2508.

I will ask the questions of the HMRC tomorrow..and see what happens.

minty1978

so, bit of an update.

HMRC admitted the delay is due to their new computer system (no surprise)

basically I owe £1311 because the HMRC think my employer at the time didn't take the correct amount for my company car.

Apparently I have to check with my then employer when the P11d was sent in. This could be tricky, as the company has now changed hands, but I have asked the new company anyway.

What I am hoping is that my company sent the P11d back in 2008, thus giving plenty of time for HMRC to contact me about the arrears.
If the employer didn't inform the HMRC by way of a P11d, then I believe my then employer is at fault...and they have to pay for not following the PAYE scheme.

Any thoughts on where I go now?

Rah80

The employer should have informed hmrc using a p46 form which is filed quarterly. They should be able to tell you this. ESC A19 only applies if hmrc didn't act on info provided to them within 12 months of the end of the tax year in which they received the info.

You can also claim that you had good reason to believe you were paying the correct amount of tax.

Im in the same boat as you, £1,400 underpayment for 08/09 but fortunately 'only' £500 in the 09/10 notice, which includes the £1,400, ie I overpaid £900 in the latter year, reducing my net underpayment.

My concern is that I received the £1,400 notice a couple of weeks ago but both years came through this week with a revised coding notice to code out the £500 underpayment. I also had a letter demanding payment of the £1,400 on the same date which I want to confirm that I can disregard given the subsequent year's position.

Terribly confusing and so worth checking as they more often than not get it wrong!

minty1978

Hi Rah80,

It would appear the company I worked for at the time didn't send in a P46. They did send in a P11d on the 1st July 2008 for the 07 - 08 year.

So by my reckoning, this information should have been used to claim the money back during the 08 -09 tax year. Is that correct? or would it be the 09 -10 tax year? Which is what they are saying and doing. (although i'm paying it back over 10 -11...)

I spoke to the tax office again yesterday, and they said that they would not accept HMRC delay, as they should have been informed sooner of my company car.
At the time I was told by my employer not to inform the tax office of the car, as they have an 'agreement' with vehicle banding....therefore, I wouldn't be able to give them the correct information.

So if it isn't HMRC delay, can I claim that the employer at the time is at fault for not informing them of the car/fuel, as I believed they would inform the tax office for me? I now have a copy of the P11d (not given to me at the time, which I believe they are required to do!)

Any help is appreciated.

Minty