P87, ESC A19 and tax underpayment

JohnT1974

Hello all,

I will try to keep this as clean and simple as possible.

basically I have received P800 forms from HMRC for tax years 07/08, 08/09, 09/10 and now just received 10/11. The resultant of these P800's is a tax underpayment of rougly £1400 which they intend to collect through my tax code.

Now, in feb/mar of this year, I submitted P87 (tax relief claims for business mileage in my own car) forms for the years 07/08, 08/09 and 09/10. The sum of these claims is approx £3300.00

However, since I applied for ESC A19 for the tax underpayment, will I still be able to or have a right to the tax relief for those respective years. Had I not submitted the p87's, my tax liability would have been almost £5000 but as I submitted them, my liability is only £1400. If they have agreed to write the tax off, surely they cannot just write off the tax relief claim also as it is not my fault they cant tick the right boxes, read a P60 or put the decimal point in the correct place.

I feel I may be penalised by HMRC for my tax relief due to their errors.

For information, the tax underpayment root cause was an error in reading a P11D from a previous position when I had a company car. They charged me the full value of the car in the p800 calculation yet I only had the car for half of that tax year. My tax codes and the amount of tax paid for eeach of the the tax years was actually correct (surprisingly) excluding the tax for the company car.

Look forward to someone telling me I am entitled to my tax relief back.:rotfl:

suso

same answer as your original post of 26/5/2011

HMRC will work out the correct amount of tax due and if the net result is you are due a refund they will refund it, if the net result is that you owe tax they will collect it.

ESCA19 is not relevant if you have only just supplied the information as the concessation only applies to information received and not acted upon in a timely manner. If the information has only just been sent in recently (the P87's) HMRC will not be neglient in delays in using the information provided.

An important aspect of ESCA19 is that you believed your tax affairs were in order. by submitting a claim for a tax refund you cannot claim that your tax affairs were in order.

jaychristianson

A Big help please

My wife received a tax demand fo £2019,67 for the tax year 2007-2008.

She changed jobs during that year and is on PAYE...

I senth the following letter...

P800 Tax Calculation – application for consideration of ESC/A19 employer error
I have received your tax calculation which suggests I have underpaid tax.
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 the tax that I was due to pay was deducted
under PAYE. I believe that the underpayment has arisen either because you have,
probably repeatedly, failed to take action with regard to relevant information
already in your possession for the year in question, or that my employer/pension
payer(s) are at fault. Indeed, it is clear by the very fact that you have now issued this
calculation that you already held the information to get my tax right.

I am therefore requesting that, under the provisions of ESC A19, the whole of the
underpayment as shown on the P800 should be remitted or alternatively that my
employer/pension payer(s) should be held liable for the tax. In this regard, in
accordance with your guidance I 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.
I look forward to hearing from you.

We received a reply within days saying "I have checked our records and found that we dealt with the information given by you or a relevant third party at the time we received it and within ESC A19 time limits. We have therfore dealt with your tax affairds without delay"......
I am confused...my wife's new employer contacted them in 2007 re her new postion (information received) ...how can they therefore state that they have dealt with the matter quickly...they should have noted the matter for the year 2009-2009....how can they come back all these years later and say we dealt with it quickly?

What are my legal options please?

chrismac1

Because this is a standard form letter they send out - just like the banks. See the strapline to this post for more details!

I work on the basis that a letter from HMRC only "counts" when it mentions facts or amounts specific to the client in question. Until that point I assume no-one has bothered to read my letter properly.

Keep going, do not give up! You'll find numerous posters on this site and others where HMRC have finally come clean after 4 or 5 letters. As and when they start acting like a public service I will change my strapline - I expect this to be shortly before hell freezes over.