MSE News: Over a million to be told they owe more tax

Gareth83

For the 2009-10 year I have just been asked to pay back over £700 in underpaid tax!!!

I had a job at the start of the year where my tax code was 653L, I also had a part time job at BR tax code. I then left the Full time job and went to work full time at the place where I was part time. I was given my P45 and handed it in to the employer so did everything right. My new tax code was again 653L.

So for the whole year my tax codes were correct but somewhere along the line an employer has obviously made a mistake.

HMRC have said if I can argue a mistake was made they will waiver it. How do I do that???????

jem16

Gareth83 wrote: »

For the 2009-10 year I have just been asked to pay back over £700 in underpaid tax!!!

I had a job at the start of the year where my tax code was 653L, I also had a part time job at BR tax code. I then left the Full time job and went to work full time at the place where I was part time. I was given my P45 and handed it in to the employer so did everything right. My new tax code was again 653L.

So for the whole year my tax codes were correct but somewhere along the line an employer has obviously made a mistake.

HMRC have said if I can argue a mistake was made they will waiver it. How do I do that???????

Perhaps knowing the figures from each employment would help. Post the P60 figures from each.

Gareth83

The figures they provided are correct and I do owe them the money.

The issue is my tax code has always been right, but somewhere along the line one of my employers has undertaxed me along the way. If this is indeed an employe error then the HMRC said they will waiver it.

dori2o

Gareth83 wrote: »

The figures they provided are correct and I do owe them the money.

The issue is my tax code has always been right, but somewhere along the line one of my employers has undertaxed me along the way. If this is indeed an employe error then the HMRC said they will waiver it.

without the figures from the P45 and P60 it's hard to work out where the underpayment has come from. But assuming it has not been carried forwards from an earlier year the only thing I can suggest is that whilst you handed in your P45 to your employer, they have operated the tax code but not taken account of the pay and tax details on the P45.

This would mean you will have had part of your tax allowance twice. i.e. with the full time employer during the period you worked for them, and again for the whole tax year with the part time employer.

JimmyTheWig

Plenty of people, xxiaoxing.
Just post your details (income, tax paid, tax code, etc) and someone will help, I'm sure.

Mikeyorks

Gareth83 wrote: »

I then left the Full time job and went to work full time at the place where I was part time. I was given my P45 and handed it in to the employer so did everything right.

Unfortunately you didn't do it right. The P45 is for a 'new' employer - but you weren't going to a new employer? The P45 should have been sent to HMRC with an explanation ...... giving it to the (existing) employer is what has likely caused the underpayment. It sounds as though - in processing the P45 - they've refunded you the tax deducted under 'BR'? If you look back at your payslip for the payday following processing the P45 - no doubt you had a fairly substantial refund? This (An existing employee wants to give me a P45 ...) is what should happen :-

http://www.hmrc.gov.uk/employers/faqs.htm#4

HMRC have said if I can argue a mistake was made they will waiver it.

Some misunderstanding there I suspect. In theory HMRC will switch the liability to the employer if they've failed to operate PAYE correctly. In practice there needs to be systemic problems before they will do that. Where there is just an odd error they will generally maintain the underpayment against the employee as being the beneficiary. If you did have a fairly handsome refund when you switched fulltime to the 2nd job ...... then any argument you can put up is significantly diluted?

atenolol

I have received a letter from HMRC saying I need to pay back -
1. 2008 - £120
2. 2009 - £523
3. 2010 - £134
Thanks to MSE, I cam across ''Extra Statutory Concession (ESC) A19''
Does this rule apply in my case for 2009,2008

dori2o

atenolol wrote: »

I have received a letter from HMRC saying I need to pay back -
1. 2008 - £120
2. 2009 - £523
3. 2010 - £134
Thanks to MSE, I cam across ''Extra Statutory Concession (ESC) A19''
Does this rule apply in my case for 2009,2008

Why have you underpaid?

You need to know the reasons why the underpayment occurred before claiming ESCA19 as you need to know what the basis of your appeal is.

Simply writing 'I want to claim under ESCA19' is not good enough.

atenolol

Thanks dori2o,
I was a paid apprentice and was in training . Due to training requirements , I was changing jobs every 6 months in different companies across UK.
At the end of each job, the HR would give me a end of employement P45 , which I would hand over to the next company's HR
HMRC have said that I have underpaid due to change of jobs
Can I still apply for ESCA19 ?

cozza

I just spoke to tax office and the woman says she didnt have a clue what i was on about ?
and how do i find out what my tax earnings were for 2003/2004 as she said she has no details for me ?
I dont have details from that year as i only keep records for 5 yrs when its the tax
so i dont know wether i have underpayed or over paid ?