2007-08 Underpaymant of Tax - Inadequate response

DenverK

Hi all

Im another one... I got a letter asking for my underpayment and so I am in the process of trying to query it. I wrote a letter 3 months ago asking for the following:


Write off the tax owed for 2007/08 under Extra-statutory Concession A19, as you have delayed in using information in your possession to calculate, and tell me about, the underpayment. Not being an expert in tax matters, I had no reason to suspect that I might not be paying enough tax. I had thought that all tax due was deducted under PAYE.

I also understand that when considering my application for ESC A19 you should first consider whether there has been any fault on the part of my employer/pension payer(s); and therefore whether you should instead recover the underpayment from them.

• a full breakdown of the figures used in the calculation;
• an explanation of where the figures have come from and any estimates used;
• a detailed explanation of how the tax underpayment occurred; and
• full reasons why you believe I must repay the tax.

I have received a reposnse simply saying "We were right about our calculation you still need to pay"

I have seen none of the evidence I requested and now they are gong to start deducting from PAYE.

Surely this is wrong.. maybe even illegal. What can I do next? Complain, go to the ombudsman? They cant just take money with no evidence?

Thanks in advance

Mikeyorks

DenverK wrote: »

They cant just take money with no evidence?

Thanks in advance

They have provided the evidence in the form of the PAYE reconciliation (P800)?

If you want it checking - post the details plus the P60 figures for the same year (pay / tax / Code)

DenverK

I have received a P800 which looks like they are right, but these are just numbers on a sheet of paper. I have asked for

• a full breakdown of the figures used in the calculation;
• an explanation of where the figures have come from and any estimates used;
• a detailed explanation of how the tax underpayment occurred; and
• full reasons why you believe I must repay the tax.

Which I believe I am within my rights to do. They have just ignored it and told me that they are correct

What can I do from here?

System

DenverK wrote: »

I have received a P800 which looks like they are right, but these are just numbers on a sheet of paper. I have asked for

• a full breakdown of the figures used in the calculation;
• an explanation of where the figures have come from and any estimates used;
• a detailed explanation of how the tax underpayment occurred; and
• full reasons why you believe I must repay the tax.

Which I believe I am within my rights to do. They have just ignored it and told me that they are correct

What can I do from here?

It may take HMRC several days (or weeks) to send you a breakdown.

If you do not receive it, send a letter headed "COMPLAINT" stating what you asked for and asking for a full reply to your original request / complaint.

Mikeyorks

DenverK wrote: »

What can I do from here?

They have provided the detail. Check it back to your P60. If - as intimated - the figures are correct then you're just wasting everyone's time saying 'they're just figures on paper'!

If they match your P60 - then they got the figures from your employer. The best they can do is attempt to identify how the underpayment arose. Equally you should be able to do that. Incorrect code / change of job and P45 not used / benefit in kind etc etc.

They will normally - but do not have to - attempt to point out how the underpayment arose. In most cases the cover to the P800 actually tells you????

DenverK

I havent got the records, that's why I want some evidence? Am I not entitled to this?

From HMRC website

How long to keep them
HMRC suggests you keep your records for at least 22 months from the end of the tax year they relate to. The tax year runs from 6 April to the following 5 April, so keep paperwork until at least 31 January nearly two years later.

dct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010555

Mikeyorks

DenverK wrote: »

that's why I want some evidence?

At the risk of repeating myself .... you have the evidence. It's called a PAYE computation and is on the P800 you have. What more do you want. If you want to cross-check it then ask your employer for a statement of earnings / tax for 07-08.