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P800 and ESC A19

Noot_2
Noot_2 Posts: 12 Forumite
I've had a P800 saying I underpaid tax in the tax year 2007-2008. This is for £821, and I'm not happy at being sent a letter saying I must pay this within two weeks (I always keep 820 quid in my trouser pockets for such eventualities! )

From what I understand, if HMRC failed to collect tax based on information they had, within 12 months, then I may not have to pay up.

On the P800 the reason given for the underpayment was "Tax was due at higher rates".

How can I prove they had this information at the time?

Have I got any chance of claiming not to pay under ESC A19?
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Comments

  • Noot_2
    Noot_2 Posts: 12 Forumite
    Assuming I do have to pay (most likely), anyone know what the payment options are? Haven't got that amount to hand.
  • dori2o
    dori2o Posts: 8,150 Forumite
    Part of the Furniture 1,000 Posts
    Noot wrote: »
    I've had a P800 saying I underpaid tax in the tax year 2007-2008. This is for £821, and I'm not happy at being sent a letter saying I must pay this within two weeks (I always keep 820 quid in my trouser pockets for such eventualities! )

    From what I understand, if HMRC failed to collect tax based on information they had, within 12 months, then I may not have to pay up.

    On the P800 the reason given for the underpayment was "Tax was due at higher rates".

    How can I prove they had this information at the time?

    Have I got any chance of claiming not to pay under ESC A19?
    What were the circumstances for that year?

    Did you have 1 or 2 sources of income?

    Did you regularly in previous years have an income in excess of the higher rate threshold?

    Did you receive benefits from your employer during the year, i.e.company car etc that were not decalred to HMRC at the time they were received?

    Without further information nobody on here can advise whether ESC A19 would be applicable.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    No one can help you without the P800 figures + the P60 figures (pay / tax / Code number) for the same year?

    The payment options are indicates within the Notes / What happens next leaflet you had with the P800? Ring them and ask to pay over a year (or more). If you're earning at 40% .... the 'or more' may not be available.
    If you want to test the depth of the water .........don't use both feet !
  • Morning all.

    Im in the same situation for 2007/8 but for £505 with the option to pay back over tax year 2011/12 via PAYE.

    I have one source of income.

    Lower rate tax.

    I received car (4234 p11d value) private fuel (3456 p11d) medical (345 p11d) - all declared via my payroll.

    Tax code for first 4 months of tax year 07/08 was 522L, remainder of the year was K263 as advised by tax office to make up for shortfall in 2006/7 as they claimed they did not know about my company car provided in Nov 06.

    Im no expert but think the error either lies with my company payroll or HMRC - hopefully!

    Any advice would be greatly appreciated as tax is something I know little about.

    Thanks in advance.
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    You will need to check your Code numbers for 07/08 and 08/09 back to the P11Ds you should have from your employer? The 08/09 one looks to be crucial ..... it should reflect a reduction of at least the P11D value which would be submitted by July 07.

    Normal basic Code for 08/09 was 603 (I think it was 543 at the start of the year - increasing in Sept). Your 08/09 code should be considerably less and probably still a 'K' (negative value) Code.

    The change to your Code after 4 months of 07/08 reflects the fact your employer submitted the initial P11D to HMRC by July 07 - as they are required to do. And also that HMRC reacted quickly to that. If you wanted the benefits in kind taking account of earlier - then that's down to you to advise HMRC directly.
    If you want to test the depth of the water .........don't use both feet !
  • lordvader
    lordvader Posts: 5 Forumite
    Thank you for the prompt response - much appreciated.

    Will hunt out the P11d's & codes (will these codes be on the p11d which you need to know, I have codes from individual payslips?) for 08-09 also, not too sure what you mean by 'reduction of the p11d value' fogive my ignorance.

    In 08-09 my private fuel benefit was removed also.

    Appreciate the error was mine on the 06-07 car benefit.

    Thanks again
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    The Codes will either be on a P2 (Coding Notice) or on your P60 at the year end.

    The 'P11D value' I was querying is the fact that your 08-09 code should equally show a significant reduction in personal allowances as did your 07-08 (Code 522 L down to K263 is a reduction of £7850 in personal allowances)?
    In 08-09 my private fuel benefit was removed also.

    ........ now I'm unsure. 'Removed' from where ....... did you give up the car and fuel?
    If you want to test the depth of the water .........don't use both feet !
  • lordvader
    lordvader Posts: 5 Forumite
    Thanks again, will come back asap.

    Private fuel was removed as a benefit company-wide, car remained.
  • I've also had a P800 gift to come home to - I owe £947 for 08/09 due to my company at the time under-declaring to the tax man my car and fuel benefits. They did of course fully declare them to me so I didn't spot the error!

    Anyway, just spoken to a very nice welsh bloke and after some calculations he was able to show me that it was a valid claim (I thought it should be lower) - he accepted that the way it had been calculated on the P800 was totally wrong but the total was correct.

    My letter said nothing about repayment, so after asking nicely he has arranged for it to be added to my tax code. He said that it may not appear on the first code issued but if so they would reissue the code to reflect it. A £79 hole in my salary, but its better than them saying "cough up". Like its my fault!
  • We have just been hit by a bill for £3500. It looks as if this bill is correct my fault. However, we have not contacted HMRC yet about repayment. Don't have the £3500 can someone advise what we should say to HMRC when we do contact them.
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