P800 with a twist

tootiemac

Hi All,

I am here seeking advice on my partners income tax situ.

It's a long one so bare with me if you would.

My BF is 23 and has worked for a weel known supermarket chain for 5 years and works only 14.5 hrs a week (they cut it right back in april last year). So this means he very rarely pays any tax as he has the standard tax code of 647L.

He took on a temp. job (covering maternity) in January of 2010 and worked for approx 10 months of which 3 he didnt get any pay because he wasnt required. From the very start of this job he was paying tax of roughly £40 pm on an average earn 600 -700 pm. We know this is low but it went up and down with his wages so we assumed all was well. He finished the work in October 2010 but they asked to keep him on their books incase cover was required again.


Then in January 2011 he received 2 payments of £108 into his bank. He had worked 2 weeks cover in december so thought this was pay and mayb hols, he brought it to his contacts attention but nothing cane of it so this money has sat in his savings every since. He has nevered recieved any documentation from any source telling him what it is though he knows it came from the temp employer as it shows in his bank as them.

On Friday past he recieves a P800 stating he owes £950 :eek:. They claiming both his jobs were applying the full tax allowance. So we pull out all the paperwork we have, the payslips and P60's for both jobs and low and behold the temp job P60 says £0 tax. so we tot it up and even with the extra £108 he should still have £356 tax paid.

So we phone the Temp company and they state the gave him all his tax back in Jan. and Feb. We have no Feb payment in the bank statements. We have phone the temp agency again and they will send out the payslips for these now.

So my question is what do we do?? his payslips say he's paid tax, we now realise lower than it should have been. Only one payslip shows a change to the BR rate for a second job then they go back to 647L (he never noticed this because they were still taxing him). He can no longer afford to pay back the sum as his earns very little (and we have been told they normally try and collect within the year).


Any help and advice apprecaited we are really confused and cant afford to pay £80 pm at the moment.

Thanks

Vicki

Niggles

Hopefully I can help with how the tax calculations roughly work.
Difficult without precise figures but here goes.

Lets assume supermarket earnings are £6,500pa gross as tax rarely paid. Code 647L
Lets further assume temporary job about £8,750pa gross, £729pm gross Tax £38 net income £690 before NI deductions, code also 647L.

For the tax year 2009/10 total gross income would be £6500 + (3 x £729) = 8687 with tax due of £442.
Tax paid 3 x 38 = £114 so tax underpaid for 09/10 £328. (All figures approx but indicates typical tax liability)

For the tax year 2010/11 total gross income would be £6500 + (7 x £729) = £11,603 with tax due £1,025
Tax paid 7 x 38 = £266 so tax underpaid for 10/11 £759 (All figures approx but indicates typical tax liability)

However in 10/11 actual temporary earnings in 7 months were less than the PA of 6475 so it is likely the £266 tax above would have beeen refunded.
So Tax underpaid would then amount to the full £1,025.

These figures may not exactly match yours but hopefully explain the calculations.
I think the tax of £356 you say has been paid covers two tax years but some may have been rebated.

As to requesting relief I am not sure you have many options, other may be able to help advise on this.
You could request a longer time to pay than it all being recovered in one year.