Underpaid Tax

Grabbot

Hi all

I'm an ex-UK resident (actually, still have residency) and I now live in Australia.

Recently, I've received letters from HMR&C about underpaid tax, annually since the 2007-08 financial year. My bill is apparently over £5k

Since I moved overseas, I've not really followed the news in the UK, so didn't hear about the big computer stuff up at HMR&C apparently caused by the system not changing PAYE codes; this is the first I've heard about it.

What the heck's going on?? Is/was anyone else in the same boat, and if so, how did you get out of it? I don't just have £5k sitting around to pay this off

Any advice/news is most appreciated.

Cheers

John_Pierpoint

Simply read other postings on this forum.

Searching for ESC A 19 might give you a good tag for overlooked cases like yours.

What is it that makes you UK resident?

Grabbot

Thanks John

That's a lot of into to work through.. I've read a bit and it seems that there could be a way out, as the information has to be sent from HMRC within a certain timeframe? I'm hoping the 2007-08 year won't count.

In answer to your question, I have ILR, hence my "Residency" status.

Grabbot

Reading into a bit more, when I started a new job in 2006 (October), a copy of my contract was sent to HMRC (sounds like an odd thing to do now, yes, but being a foreign national, without a comprehensive understanding of the UK tax system, I thought it was better to be safe than sorry, as a few years ealier in 2003 my tax code was also stuffed up by HMRC).
I also sent a copy of my P60 (with P14 forms) and P45 to HMRC at the end of that financial year. So that means HMRC had the information since 2007-2008. This is the year that HMRC tells me the wrong tax codes issue began.

Since then, I have sent the same forms each year, plus I notified them of my change in address in 2009. I know they are receiving this information, because when they sent me my P800, it was to the new address. I did not tell my employer of this change, for personal reasons, so this could not have been passed on. It's very easy for me to prove the change of address and when it occured.

So based on that, since HMRC have had the right info from day one, why are they still asking me for repayment from 2007-08? I thought there was a year+1 limit on when they could submit a chaser... that would put the deadline at April 5 2010.

FTBFun

Grabbot wrote: »

In answer to your question, I have ILR, hence my "Residency" status.

FYI - this doesn't necessarily mean you are resident in the UK. If I, as a British citizen, left the UK to work overseas I may not be resident in the UK. Residency for tax purposes, and residency for immigration purposes, are two separate threads.

I'm assuming you spend less than 183 days in the UK, and less than 91 days on average over the past 4 years?

John_Pierpoint

Welcome to Britain, land of death and taxes?

As we all become more and more citizens of the world, there is a power struggle going on between nation states to grab "errant miscreants" from foreign lands.
I am not sure what the UK's relationship is with Australia over nationals of a third country.
Does HMRC actually know where you are living - my son spent a lot of time living out of a suitcase in several foreign countries, but gave my address as his UK base.

However as you might want to return to the UK its probably best to clear up this matter. By the sound of it, you have a case for at least partial relief under ASC A 19. There are specific rules on when HMRC must know something and the ASC A 19 clock starts running.

If you have got your figures, including the benefits in kind, post them on here and someone will check them for you.

John

Anyone know how Asil Nadir is getting on?

http://en.wikipedia.org/wiki/Asil_Nadir#Current_work
Asil Nadir returned to the UK at Luton Airport with wife Nur on 26 August 2010 to face trial.[6][11] His bail conditions include the £250,000 bail surety already paid to the court, surrendering his passport, wearing an electronic tag, reporting to a police station once a week, and being prohibited from going near any airport.[6] He appeared before the Old Bailey on 3 September 2010 to comply with bail conditions.[11][11] His trial is not expected to take place until 2012 owing to the complexity of the allegations.[12] He will be living in a £20,000-a-month rented house.
According to a Press Association report on 5 December 2010, Asil Nadir was arrested on 4 December 2010 in Central London for allegedly breaking his bail conditions. He was released five hours later, claiming that the police had apologised to him. He has said that he will issue a writ against the people responsible but it is unclear whether this is the Metropolitan Police or the company that monitors his 'tag'.