Tax Underpayment P800 advice needed

thunderb0lt

Hello

I posted this on HotUKDeals, just pasting here, as any advice I can get is appreciated, thanks!

Hello, just need some advice if possible please. Here's the situation, it's quite long to explain so please bear with me

I was working one job, job A. Job A I was working about 15-20 hours a week getting approx £200.

I started job B in November 2009, I reduced my hours of job A to 8 hours a week, getting approx £50-60 a week. Job B was now my main job, approx £19,000 per annum.

When I started job B, I completed a P46, I informed Tax office of change, they gave me tax code of 600L for Job B and 47T for job A.

Thats all very well and good.

I noticed first month pay for job B I was taxed BR but this was to be expected seeing they didn't have correct tax code, further months, it went from not being taxed at all to be refunded tax, being taxed odd amounts. It was only Feb or March where I was taxed correct amount for job B.

I queried this with payroll and explained that I didn't want to be in a position whereby I was asked to pay this back, they said words to the effect of don't worry it's meant to be like this you are due all these refunds, ok then.

So, come October 2010, I receive P800 advising of £850 underpayment, it would be recovered through tax next year.

I wrote to them in Feb explaining everyhting with copies of payslips, and on the notes of P800 it said that if tax hasn't been correctly taken through PAYE employers are liable. I explained all this. Thus would put me under hardship, as I can't afford to pay such a large amount over a year.

Now 6 weeks after my letter, I received a generic reply saying that the underpayment was not due to my employers fault through PAYE, and I still need to pay back monies. As a compromise they are willing to recover money over 2 years opposed to 1 year.

Now my question is should I just accept this or should I challenge them further, I mean if I owe this, fair enough but they could at least give me a proper explination as to how this underpayment came about as I officially declared everything and don't understand.

They want me to reply back before new tax year if I accept the two year compromise.

Am I likely to get this waived if I challenge them, or should I just let it go. Has anyone managed to get theirs waived.

Sorry for the long post.

Thanks in advance!

chrismac1

First please post up the figures from P45s and P60s, HMRC make a lot of mistakes with these.

thunderb0lt

Well the P800 states I underpaid £835 which seems to crosscheck fine with the two P60s but I don't understand why this underpayment has come about or why I am liable, I openly declared everything.

Job A Gross Pay 7728.42 Tax 617.00 Tax code 47T
Job B Gross Pay 7853.17 Tax 368.50 Tax code 600L

P800

Income: 15581 Tax paid 985.80 personal allowance 6475 tax on 9106 @ 20% = 1821.20 = tax chargeable. 1821.20 - 985.80 = 835.40

Mikeyorks

thunderb0lt wrote: »

Job A Gross Pay 7728.42 Tax 617.00 Tax code 47T
Job B Gross Pay 7853.17 Tax 368.50 Tax code 600L

There is no problem with the Job B figures ..... as your original post intimates. The tax is correct to within a £1.

The entire underpayment of £835 stems from Job A ....... where the correct tax due on £7728 with Code 47T is £1451.60

thunderb0lt

Thanks Mikeyorks. I think it seems like the only option for me is to take the 2 years for them to recover the amounts owed. somone on HUKD mentioned: "your tax codes changed as your main job changed you should have been put on a wk1 code(with an x at the end) to stop any backdating to stop any refunds"

When I spoke to the HMRC advisor, she did mention something about this but I didn't understand what this meant.