Non taxpayer now forced to pay tax!

ronwyatt

I receive a small pension of just £3.6 k per annum(aged 58), well below the tax threshold.

I have just commenced a small job invigilating and although not employed by the organisation, they are now insisting(forced to by HMRC) that that they pay me via their payroll and deduct tax at the basic rate too! I paid £20.40 tax on an invoice value of £102.46, of which £18.00 were travelling expenses.

In addition they also say that HMRC have instructed them to tax travel expenses too!

I normally account for my tax via annual self assessment(for the alst 7 years) and would settle up then if any tax was payable. I now have to wait a full tax year in order to claim back the tax I am not liable to pay in the first place. I have phoned HMRC twice but they have not been helpful at all and neither has the organisation that I worked for. It seems that very low paid workers who can ill afford to pay are now being hit hard.

Is this correct does any one know?

diolch

That does not surprise me in the least! HMRC - getting as bad as the DWP now!

Like me, I have multiple sources of income. 6 pensions + ESA which is also taxable.

Every year for the past 3, they issue coding notices out, that mean I pay tax on all but one pension, then for No6 they have allocated far too many allowances - to cover the income. Result, I overpay tax every year and waste tax allowances. Because of this I have to be self assessed, and every year I get a tax rebate.

It is so easy to just give enough allowances to each source then I don't pay tax!! Oh no not HMRC - that is too much like hard work. I have given up writing letters about it.
Every month I am short of money, come May I'm quids in!

sueturnersmith

Is your invigilating job regular, or temporary? If it's regular, and your only other income is your small pension, you need to write to the tax office dealing with the invigilating job (your employer will be able to tell you this), and tell them that your only income is this job and your pension of £3.6K or whatever it is, and ask them to sort out a correct tax code for you. For this tax year, your total allowance is £7475, and any income (including pension) above this will be taxed at 20% (unless your income is very high).

praline

My employer does this, the reason being that we received a 50k fine a few years back for not paying people via PAYE who in turn did not pay tax.

Are you registered self-employed? If so there is a HMRC form that you can you to avoid the tax which transfers liability from the 'employer' to the 'employee'. One of my contractors provides this form with every invoice... It is a form directly from the Tax office I am sorry I cannot remember which one - I do not administer such invoices but negotiated a solution when faced with this problem.

Travel expenses will be taxed if you do not provide a receipt - I forget exactly why but again I have experienced and negotiated this at work.

You need to speak with the payroll department as to how you can be paid in future which agrees with both parties.

I hope this helps.

Praline.

praline

I have had a quick look and cannot find the form.

By the little reading I have done the problem is that the liability changed from employer to employee - a company can no longer get away with using a 'but they should have paid it' approach to sub-contractors tax. The payroll office should be able to provide you with the form (I'm sure its the self-assessment form) as said above, if not your local tax office will be able to help.

Finally, you will be able to claim back the tax from the tax office. You will need to complete a rebate form but I think this is only at the end of the tax year.

Praline.