Tax underpayment...AND a rebate?!

MissDVL

Hello all, I'm hoping someone can help me out of a very sticky situation...

Since starting a new job in December I have been overpaying tax, as I was on BR for about three months, before being given two tax codes, because they thought I was still working my previous job as well.

I gave my employer my P45 in January and nothing has changed.

I received my P60 a week or so ago and lo and behold, I overpaid £587 last year. (I was on maternity leave for the majority of it and didn't even earn my personal allowance as I was between jobs.)

Since my tax code has STILL not been corrected (this is speaking before I receive my next wage slip next week), I am still overpaying.

On top of this, yesterday I received a letter from HMRC telling me I owe them £358 in tax from the year 2008-09!! A quick Google and search on MSE tells me I may be able to get this written off as it's over 12 months old. (Thank you Mr Lewis!)

So my problem is, if they are still adamant that I pay them this money, am I going to be made to pay it back first, before I get my £587, plus whatever they owe me from this tax year as well? I have recently moved into my own house with my young son and although I am a single parent I am getting no help whatsoever from the council with rent or council tax and am struggling to afford it all as it is, without the government then taking a chunk of my wages to cover an underpayment from 3 years ago!!

Any help would be greatly appreciated....

jem16

MissDVL wrote: »

Since my tax code has STILL not been corrected (this is speaking before I receive my next wage slip next week), I am still overpaying.

As this is the start of a new tax year your employer should automatically have changed you to a 747L tax code unless HMRC told them otherwise.

On top of this, yesterday I received a letter from HMRC telling me I owe them £358 in tax from the year 2008-09!! A quick Google and search on MSE tells me I may be able to get this written off as it's over 12 months old. (Thank you Mr Lewis!)

I think you have misunderstood that. People have been getting tax demands back to tax year 07/08. The 12 months has to do with the amount of time HMRC have to inform you of the underpayment AFTER they have been made aware of it.

What happened in 08/09 to cause the underpayment?

So my problem is, if they are still adamant that I pay them this money, am I going to be made to pay it back first, before I get my £587,

Why don't you get in touch with HMRC and find out?

plus whatever they owe me from this tax year as well?

This year's overpayment will happen as soon as they apply the correct tax code so you should be pushing for that to happen.