Employer Tax Miscalculation

SeekingUrgentHelp2012

Hi all,

I have received advice from my accountant completing my annual return today that as a result of my ex-employer having taxed me incorrectly through PAYE for the tax year ending April 2011, I now owe 8000 pounds in underpayment. Apparently, they had me on the wrong code.

Obviously, this has caused a huge amount of worry and concern as cannot afford to pay this and am as yet unsure as to where I stand and how best to proceed. Is there any liability on the ex-employer to have made deductions correctly? I appreciate I probably should have kept a closer eye on my code but just (wrongly) assumed that paying through PAYE, all would be calculated and accounted for correctly.

I was wondering if anyone else had had similar experiences or could offer advice, may help me get some sleep tonight!

Any advice greatly appreciated.

Thanks in advance.

jem16

SeekingUrgentHelp2012 wrote: »

I appreciate I probably should have kept a closer eye on my code but just (wrongly) assumed that paying through PAYE, all would be calculated and accounted for correctly.

Unfortunately it is your responsibility to ensure that your tax code and tax are being handled correctly.

What code was the employer using and why was it wrong? Did you have another job or pension?

CLAPTON

some facts and details would be good
it what way was the code wrong
was the previous' year OK

McKneff

The HMRC would have provided your employer with the code that they used.

SeekingUrgentHelp2012

Thanks all for speedy replies.

Apparently they used basic code but salary in post always exceeded this threshold anyway, for though it was potentially a fluctuating payscale, it was in excess the year before and thus would probably have been used to calculate the upcoming year.

SeekingUrgentHelp2012

oh, and Jem16, no other employment in this time. thanks again.

Mikeyorks

SeekingUrgentHelp2012 wrote: »

Apparently they used basic code but salary in post always exceeded this threshold anyway, .

Doesn't move us far, I'm afraid. What Code was used and what is the annual salary?

antonic

You know what the next poster will say dont you Mikeyorks ...

Mikeyorks wrote: »

Doesn't move us far, I'm afraid. What Code was used and what is the annual salary?

jem16

SeekingUrgentHelp2012 wrote: »

Thanks all for speedy replies.

Apparently they used basic code but salary in post always exceeded this threshold anyway, for though it was potentially a fluctuating payscale, it was in excess the year before and thus would probably have been used to calculate the upcoming year.

I'm assuming by basic code you mean the BR code but perhaps you could confirm?

SeekingUrgentHelp2012 wrote: »

oh, and Jem16, no other employment in this time. thanks again.

So no reason to be on a BR tax code then.

Had you changed jobs?

SeekingUrgentHelp2012

yep, basic rate code on 45k basic, on target earning 90k.

jem16

SeekingUrgentHelp2012 wrote: »

yep, basic rate code on 45k basic, on target earning 90k.

Is there a reason for the BR code?

Did you change jobs?