tax and debt

georgiasmum

I am in a huge amount of debt and was slowly but surely making headway. I have cut and scrimped and work 2 jobs but today is the end for me. I received notification that I owe inland revenue over £6000 in underpayments.

My debt is a combination of factors, not all excess shopping but losing 2 jobs in 2 months due to funding cuts etc. I am now slowly sorting things.

The 'helpful' people at inland revenue told me that I am reponsible for ensuring my employers tax me correctly and that it is 'in the statute' that I do it. I had no idea and have never heard of this at all.

Surely if I notify them via P45/P46 and claim my allowances on my main job it is up to inland revenue to make sure it all adds up. I didn't even undertand the letters they sent me until she clarified them as there were 3 different figures.

Am I naive? Should I read the statute books? I have been staving off bankruptcy and don't want to lose my home but this will cripple me. She said 'oh just claim hardship'. I am angry and feel that I would be better off unemployed or dead as my finances keep me up at night as it is.

I need advice from tax people or anyone!! thank you.:mad::mad::mad::mad:

georgiasmum

please help!!!!!!!!!!!!!!!!

backinbusiness

Sorry, don't know the definitive answer to this but didn't want to read and run.

It must seem like such a huge kick in the teeth just now, but don't panic.

As far as I know, if you've been employed and given your employer the correct information, then the tax liability would fall to them, and not you as an individual, (or were you self-employed?)

Someone with more knowledge will be along soon.

bib

georgiasmum

No news...........

ShAnE

Is there a HR department you could speak too at work?
Were you paying what you believed to be the correct tax? Were you happily paying say 10% tax on both jobs and hoping you'd get away?
Have you contacted CAB? I'm sure they've come across this problem before given the way tax is being handled at the moment.
Worse case scenario and you do have to pay it back, can you use a repayment plan?

Good luck, and let us know how you get on.

Tixy

Hi

If you have 2 jobs then it is always worth checking that the tax you are paying is correct. I guess that the second job has applied the incorrect tax code /or not realised that you were receiving pay elsewhere and getting your tax allowance elsewhere.

What years do this relate to?
How long have you been in your main job and how long have you done the second job?
When you started the second job what form did you complete? - did you complete a p46 and if so what box did you tick? what tax code did they put you on in your second job?

georgiasmum

I have had a 2nd job for over 10 years and have never claimed any allowances on it. I have always declared that my 2nd job is the 2nd job and when speaking to them they (HR/Payroll) have always been aware that they are not my main employer. My 2nd job has always been BR. I relates to 2007-08,09-10.

Tixy

Did you earn enough over the 2jobs that you should have been paying 40% tax on some of your earnings?

Have HMRC provided you with a calculation for each year to show how much they believe you earned in total, how much tax was due and how much was collected by employers?

Clarie_2

Definitely talk to CAB - they will be much better on the law. As far as I'm aware you can write and ask the tex office to recheck your tax situ at any time, if youprovide payslips and info etc. CAB will be able to help you on this. If worst comes to worst and you have to repay it, they will also support you to work out a reasonable repay rate.
Clarie

geoffky

just happened to my daughter..she had underpaid only £300 but she had to pay back it in a lump sum borrowed from me..she was told that they would not take it out of her wages over the next tax years...her work bosses did not want to know about the wrong tax code..

DVardysShadow

geoffky wrote: »

just happened to my daughter..she had underpaid only £300 but she had to pay back it in a lump sum borrowed from me..she was told that they would not take it out of her wages over the next tax years...her work bosses did not want to know about the wrong tax code..

HMRC will adjust the tax code to recover underpaid tax. The bosses do not have a choice about it, they tax according to the code given them by HMRC.