2010 to 20111 tax underpayment.

johnsmi

Hi folks,

I am on an occupational pension and also taxable incapacity benefit.

Last year I got tax demands for years 2008/9 and year 2009/10 a total underpayment of over £2100 which I paid by cheque. I didn't really mind as to be honest they could have gone back a lot of years further and I felt I was getting off lightly as I probably owed a lot more.

I thought then that the HMRC would probably get my tax code for year 2010/11 right but they wrote to me last year and a few days ago that I have another underpayment of £1100. for year 2010/11.

They are taxing me ok for the current year 11/12 maybe even a little too much but it will probably help with the underpayment.

As far as I know HMRC are well within their time limits to collect tax for year 2010/11. Is this correct?

I will probably not question it as I don't want to open any further cans of worms about previous years prior to 2008.

Overall is this a wise course of action?

Thanks
John

chrismac1

Let sleeping dogs lie. When was your incapacity benefit first awarded, was it after 1995? The reason I asked is that I sorted out a mess for a client last year who HMRC had been taxing on his incapacity benefit - but in fact he was granted the benefit in 1991 when it was non-taxable, and it always will be non-taxable.

johnsmi

Thanks for reply Chris. Yes IB was after 1995 so its taxable.

Just think I will do as you say ..and keep that dog sleeping.:)

John