Tax demand help please!

Swafe

Help please!

Received a tax demand about 2 months ago and have started to worry about it - its for just under a grand (970 or something) anyway, its one thats come through in the recent batch of 'tax man mistakes' - its their fault I was charged less and it was because I changed jobs about 18 months ago.

Anyway, is there anyway of fighting it/getting it reduced? I don't have the fund to pay it off and the other option I imagine is them syphoning out of my pay packet on a monthly basis till its paid off which will impact my ability to pay my outgoings.

I saw on another site some people had got their tax demands revoked due to some sort of section of the law (I have no idea) as it should have been flagged up in the current year and is their mistake.

So does anyone have any experience or tips? Ideally I need this to go away, its annoying how they've taken so long to even notice their mistake and its even more annoying the amount its for.

Any advice would be great... thanks!

System

If it is for the 10/11 tax year and you changed your job in that year then you can't really claim under ESC-A19 (Revenue Delay) because HMRC have advised you of the underpayment within the prescribed timescales - http://www.hmrc.gov.uk/esc/esc.htm.

If it is for earlier years and it is HMRC's fault as opposed to employer error then you can appeal under ESC-A19.

If your appeal fails then you can ask for it to be recovered via your tax code for up to 3 years.

Swafe

I need to reread the letter... but Im pretty sure its the 10/11 Tax year, does this I don't have a leg to stand on as to getting it reduced/revoked?

System

I can't see you winning under Revenue delay as they have told you within the timescales.
However if the underpayment is actually down some error on the part of your employer then you could always try to appeal it that way. HMRC would contact your employer and ask them to explain what happened and make a decision from there. Either you or the employer would be required to pay the tax.
Why don't you ask HMRC for a full explanation as to how the underpayment arose, including the date they first became aware of your new employment. The note on the calculation is just a generic note and doesn't really explain the circumstances.

Swafe

Im not sure how it could have arose! They will have received my payslips from my old job & new job and realised the salary change, ontop of this all the relevent forms when I changed roles were sent off to the HRMC & my company car was declared (which changed my tax code accordingly) so I think its a mistake on the calculation on their part - remember this was received about 2 months ago so is likely to have been in with the batch of tax demands everyone started receiving about 6 months ago.

BoGoF

Swafe wrote: »

Im not sure how it could have arose! They will have received my payslips from my old job & new job and realised the salary change, ontop of this all the relevent forms when I changed roles were sent off to the HRMC & my company car was declared (which changed my tax code accordingly) so I think its a mistake on the calculation on their part - remember this was received about 2 months ago so is likely to have been in with the batch of tax demands everyone started receiving about 6 months ago.

They wouldn't have received your payslips, the first HMRC know about your earnings is either a P45 received from the employer part way through the year or a P14 (HMRC equivalent of a P60) at the end of the tax year. They do not get notified of your monthly salary/tax paid.

Swafe

Ah I see, I thought they saw the tax on a monthly basis as surely without this surely anyone could forge a P60 to claim they've paid more than they actually have?

They will have received my P60 (or equivalent) at the ceasing of my old employment so will know how much I've earnt/paid in the first 6 months of the year - then my new employer surely contacts them to attain the right tax code so no tax is under/overpaid??

chrismac1

Post up the calculation on here first, many of them have glaring errors in them. Once the glaring errors reduce in frequency I'll think about changing the tagline at the bottom of all my posts!

Mikeyorks

chrismac1 wrote: »

Post up the calculation on here first, many of them have glaring errors in them.

As you always say that - but then, strangely, never contribute towards any rationale of the calculation - isn't the rest of your post a bit bizarre?

Mikeyorks

Swafe wrote: »

. the relevent forms when I changed roles were sent off to the HRMC & my company car was declared (which changed my tax code accordingly) .

So - did you pass a P45 on to the new employer? If so - what are the details on it? Also the full details from your P60 for that year.

And what does the P8oo (the underpayment notice) give as the reason? If you then post all the detail from the P800 someone may be able to help. But treating this as 'one of a batch of erroneous demands' is going to get you nowhere.

Swafe

The P800 mentions about my company car not being taken into account - however its only a Peugeot 207 which I've calculated at about 36 pounds a month benefit in kind - so about 450 a year but since I've owned it till the end of the tax year it should only be a couple of hundred at most, so its not just that must clearly a miscalculation on their part also