Problems with HMRC

0rsen

I am 77, and finally retired in 2008. A few weeks ago, I received a demand for £350 in respect of underpaid income tax.during 2007/2008. I didn't reply at the time, as my wife had been diagnosed with malignant cancer and I had much on my mind. I then received a phone call from HMRC explaining that I could repay in monthly instalments. I was given a choice of three amounts and opted for the lowest of these.
I then received a letter of confirmation to say that this arrangement had been agreed and this amount would be deducted on the first day of each month.
I then received a second letter, from a different office entirely, telling me that the higher amount would be deducted. I immediately wrote back to the first office, enclosing copies of both letters. On the first day of November, the correct agreed amount was taken from my account and I assumed all was well.
However, on 1st December, they withdrew the larger amount, which is three times what I agreed.
I have since written again, but received no reply. All correspondence was sent recorded delivery.
My question is, can I stop them taking further amounts, as I am now two months in advance? I can ill afford to be worrying about this, but I am afraid of them doing the same in January.
Thanks in advance

BoGoF

If you are paying by direct debit cancel it now (or tomorrow) to stop them doing the same in January.

You haven't said how the underpayment occured - this is what you should be querying before agreeing to pay it back. You may be able to get the underpayment waived depending on the reasons it arose.

Post back with the reasons and more advice can be given.

0rsen

Thanks for the reply, Bogof. Apparently, this was an error on their part. They failed to collect enough from me for the year. It seems that they can't handle these matters when people are receiving State pensions and have a job at the same time. I shall contact the bank, today, and see if I can cancel the arrangement. I didn't sign any authorisation for the DD, by the way. Don't know if that helps.
Certainly, with my wife's illness, I could do without this additional worry. It's now 4am and I can't sleep.
I was particularly galled to see that HMRC wrote off £10 million owed by Goldman Sachs, last year. How cosy.

Mikeyorks

0rsen wrote: »

It seems that they can't handle these matters when people are receiving State pensions and have a job at the same time.

Not strictly true. It works for most people .... after all it's no different to someone getting a State Pension and private pension at the same time. But if it's going to go wrong it does tend to be at the point where changes are happening - such as you giving up work.

If you post the figures from your P60 / P45 for 07/08 and all the P800 details (the underpayment letter) for that year - someone will have a look and check if the £350 looks sensible?

I would cancel the DD with HMRC. As it gives you a chance to sort it out at the same time - and get it back to the level you agreed?

Rupert_Bear

I received a tax calculation for the same year as OP and said I had underpaid by £201.84. However do not assume they are correct and challenge it. I was aware at the time of the underpayment and paid it in one lump sum in 2008. Fortunately I kept the receipt and have copy of the cheque for £201.84 proving it was cashed. They are investigating but being one of the old school I always assumed they were correct.

Mikeyorks

Rupert_Bear wrote: »

I was aware at the time of the underpayment and paid it in one lump sum in 2008. .

Completely different scenario to the OP then? If you paid it as a Voluntary Direct Payment I trust you got a P254 from them to make the payment on? Otherwise - with 30M customers - I'm not surprised the payment hasn't landed at the right place. Even with a P254 the VDP accounting route within HMRC makes Hampton Court maze look like a straight line.

Rupert_Bear

Mikeyorks wrote: »

Completely different scenario to the OP then? If you paid it as a Voluntary Direct Payment I trust you got a P254 from them to make the payment on? Otherwise - with 30M customers - I'm not surprised the payment hasn't landed at the right place. Even with a P254 the VDP accounting route within HMRC makes Hampton Court maze look like a straight line.

They sent me a pink form and attached to the form was a credit slip for me to pay this amount. What I do find strange why has it taken so long in them assuming it was not paid. The advisor seems to think it may be in their holding account.

Mikeyorks

Sounds like a P254 then. However it wouldn't be the first time the local office has completed it incorrectly. So in a suspense account at the Accounts Office is the most likely place.

0rsen

Thanks for all the input, folks. I was able to cancel the DD online.
2008 was the year that I had to get my MP to sort out my tax problems.
I had about ten different tax codes in six months, and they just could not get it right. One letter from Kelvin Hopkin, and it was sorted within a week. Well, I thought so at the time.
I will have a look for my P60s etc,.later and get back to you.
Thanks again.
Orsen

nickcc

Received a claim for £750 for unpaid income tax a few weeks ago, took early retirement almost 16 years ago with the correct tax deducted from my company pension (paye) The underpayment was due to me receiving the full state pension from September 2010 without the necessary extra tax being deducted from my company pension until the new tax year in 2011, this of course was due to a mistake by Revenue and Customs.

Mikeyorks

nickcc wrote: »

this of course was due to a mistake by Revenue and Customs.

The two things don't necessarily follow. Did you complete a P161 (Pension Coding)? Or notify HMRC if you didn't get one :

http://www.hmrc.gov.uk/pensioners/approaching-notify.htm