PAYE and HMRC

road_apple

Hi there, hopefully one of you smart types can help me out.

I'm not exactly a high earner, I have a wife, child and mortgage to support and the HMRC are really hammering me. In the last 12 months I have been told I've underpaid income tax of over £2600, £1600 a year ago and another £1000 a few days ago. I know I'm stuffed and the HMRC are just going to take the money, whether I have it or not.
Would it be possible to request my employer remove me from their PAYE system? Would it cause them any problems? I'm sure I can work out my own tax easily enough, at least far better than the clowns that are currently doing it.

Thanks in advance.

DCodd

You can't opt out of PAYE. If you are registered as self employed you can "do your own tax" but even then if you do not meet the criteria for being a subcontractor for any job you undertake, you will be regarded as an employee and subject to PAYE.

Mikeyorks

road_apple wrote: »

I'm sure I can work out my own tax easily enough, at least far better than the clowns that are currently doing it.

With respect. If that's the case then you should have spotted the circumstances that have given rise to the underpayments - before they got that far? It normally only requires a basic check of your Code / P11D in order to make sure you're paying the right amount at the right time.

If you post up the details from the P800s - and your Coding details (P2 if you have one) for the same year ....... someone may be able to shed light.

road_apple

DCodd wrote: »

You can't opt out of PAYE. If you are registered as self employed you can "do your own tax" but even then if you do not meet the criteria for being a subcontractor for any job you undertake, you will be regarded as an employee and subject to PAYE.

The complication arises from me driving a company car. It looks like the goofballs at HMRC have been issuing my employer with the wrong tax codes. They have gone back several years, but who's to say they won't go back further, or continue to give the wrong tax code. Maybe they will realise they screwed up twice and back charge me yet again?!? The system is absurd.
I did talk to HMRC but the woman I spoke didn't understand the system as she had only been there for two weeks.:T She even had the cheek to tell me I should put aside some of my wages in case this happens in the future.

chrismac1

First off, post up the details on here. As you've discovered, a lot of HMRC operatives are not exactly top drawer and this includes the IT staff - hence a lot of these underpayment statements are just plain rubbish. I am not saying that is the case with you, just that the first step is to make sure HMRC have used their abacus properly in your case.

chrismac1

Not a week goes by if you are an accountant. Today I got a letter "fining" a client for late submission of corporation tax return which was due for submission on 2 Dec 2011 !! £200 for late fining of a return not due in for 3 weeks, which in any case was actually submitted on 17 October!

"Oh yes we should have picked that one up, the computer has made an error. I am going to wipe off the £200 fine."

road_apple

Thank you. I'll have to dig out the details when I get home and post them up.
I did check the HMRC website and it says that it's possible to challenge them on underpayments if you can prove they had the relevant information but failed to act on it several times. This shouldn't be a problem for me but I doubt they will give in.

chrismac1

If you have a valid claim they WILL give in and YOU will win. it might take 5 or 6 letters, they normally do a bit of fobbing off first. Look up the "Esc A19" posts on this site and others for inspiration. First we need to see if you have a valid claim.

dori2o

I see Chrismac is talking to himself again. Considering all these clients he claims to have you'd think he'd be too busy to post on MSE

Mikeyorks

road_apple wrote: »

The complication arises from me driving a company car.

So have you - as I indicated earlier - checked your P11Ds? Which is the form your employer completes to denote the taxable benefit to you of having a company car. And they then send that off to HMRC - with a copy to yourself.

But it's done after the end of the tax year ...... so all these 'benefits in kind' have a drag effect on your PAYE as you're always playing 'catch up'. Unless you take steps to keep it up to date by informing HMRC yourself as soon as the 'benefit' is given?