Incorrect P11D liability

laurasplog

Hi all

Hoping an expert can help; I recently received notice from the Inland Revenue that I owe over £1000 for an incorrect amount of tax deducted in 2007/8, based on my Benefit in Kind statement (P11D).

The P11D is calculated by the employers and is really difficult to check as the calculations used are often complex, so I didn't pick up on any error (if there was one) at the time.

Inland Revenue now want me to pay this money back (as I should originally have been taxed on it), but surely a proportion - if not all - of the liability should sit with the employer, as it is their mistake, not mine.

Does anyone have any experience or advice on this, or must I just pay up and shut up?

Thanks

Laurasplog

JohnT1974

if you had the company car (benefit) for the full tax year in question, then your P11D will state that full amount, i.e. I had a VW passatt for the tax years 2006/07 and part of 2007/2008. My P11D for the tax year 2007/08 stated the full value of the benefit for the car, i.e. £3700 and stated how long I had the car for in that year, i.e. 7 months.

Now HMRC stated I underpaid tax for that year (an argument still ongoing as I write) all down to this. Basically, as they were provided all the correct information for the tax years 06/07, 07/08 and 08/09, they have agreed to write off the tax underpayment (liability) due to ESC A19 clause.

basically if you can prove that to your knowledge all your tax affairs were in order and that HMRC failed to act in a timely manner having been given all the correct information (P60, P11D etc) then you can request the tax is written off by applying for ESC A19.

hope this helps.

Ralphy101

laurasplog wrote: »

Hi all

Hoping an expert can help; I recently received notice from the Inland Revenue that I owe over £1000 for an incorrect amount of tax deducted in 2007/8, based on my Benefit in Kind statement (P11D).

The P11D is calculated by the employers and is really difficult to check as the calculations used are often complex, so I didn't pick up on any error (if there was one) at the time.

Inland Revenue now want me to pay this money back (as I should originally have been taxed on it), but surely a proportion - if not all - of the liability should sit with the employer, as it is their mistake, not mine.

Does anyone have any experience or advice on this, or must I just pay up and shut up?

Thanks


Laurasplog

I HAD THE EXTACT SAME THING!!

I got my debt wiped.... here why!

1) ask them when the tax was relevent... mine was from a company car in 2008. ( its because they have a new computer system - back tracking over peoples taxes working out who owes them what).

2) if the tax they are trying to collect is over 12 months old then look at their extra statoury concession. http://www.hmrc.gov.uk/specialist/esc.pdf

You need to prove that your employers sent off the P11D - get a copy from the accounts department. Call the inland revenue back and say you would like to make a claim to have the debt cleared based on the extra statoury concession - they will then transfer you to another dept... they will ask you a few questions... then they will give you an answer.

I had £1800.00 wiped doing this. They are crafty b*ggers!

Ralphy101

JohnT1974 wrote: »

if you had the company car (benefit) for the full tax year in question, then your P11D will state that full amount, i.e. I had a VW passatt for the tax years 2006/07 and part of 2007/2008. My P11D for the tax year 2007/08 stated the full value of the benefit for the car, i.e. £3700 and stated how long I had the car for in that year, i.e. 7 months.

Now HMRC stated I underpaid tax for that year (an argument still ongoing as I write) all down to this. Basically, as they were provided all the correct information for the tax years 06/07, 07/08 and 08/09, they have agreed to write off the tax underpayment (liability) due to ESC A19 clause.

basically if you can prove that to your knowledge all your tax affairs were in order and that HMRC failed to act in a timely manner having been given all the correct information (P60, P11D etc) then you can request the tax is written off by applying for ESC A19.

hope this helps.

Apologies john didnt see your post... but nevertheless we both confirm the same thing!

JohnT1974

No worries.

I was given the same excuse that the old computer system did not pick up these liabilities.
Anyway the new computer system now says YES and surprisingly, people are getting tax bills for alleged underpaid tax for any number of reasons.
I think this new computer system is the old system but with a new sticker or something, well they need something to offset all the overpayments (4.5 million people allegedly).

Murdina

I think that what you are saying is that your employer calculated the P11d benefit wrong.

That is not the same as HMRC failing to make use of information provided on form P11D on a timely basis, which might be grounds for ESCA19 applying.

If your employer made a mistake then tell HMRC that it is for them to collect the underpaid tax from the employer. Keep pushing on this. Typically in PAYE audit visits where they pick up on benefits in kind errors they seek the tax from the employer not the employee.

chrismac1

Totally agree with the last posts. Do not give up! It may take 4 or 5 letters before HMRC admit defeat - still that's about 20 letters less than a bank which has ripped you off on PPI or a pension!

laurasplog

Thanks guys - really appreciated.

Am keen to push this back to HMRC to collect it from my ex-employer (as it's the employer's mistake, not the HRMC's). Does anyone have any typical wording they've used successfully in the past on this, to push the responsibility to the employer rather than to me?

Thank you again