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Help with Tax - HMRC no use whatsoever

135

Comments

  • withabix
    withabix Posts: 9,508 Forumite
    edited 20 February 2012 at 7:55AM
    Seems that a lot of the OP's tax mess is down to the usual problem of employers issuing P11Ds that are hopelessly wrong.

    My employer does it every year, because they seem to be unable to keep up with the various tax-avoidance wheezes that they keep imposing on us - supposedly to benefit us, but actually to benefit them more! (Current tax and NI wheezes are Smart Pensions, payroll reimbursement of business mileage tax relief, daily meal subsistence payments, some peculiar tax/NI relief on holiday pay and Share Incentive Plans).

    The latest one they messed up was the moving of tax relief on business mileage from HMRC to payroll reimbursement from the 2010/11 tax year onwards:

    They issued P11D for 2009/10 omitting the business fuel A YEAR EARLY, generating an apparent overpayment of tax.

    They then compounded that by issuing a P11D for 2010/11 adding the business fuel A YEAR LATE, generating an apparent underpayment of tax and of course providing mis-information for HMRC to change me to an incorrect tax code for 2011/12.

    Employers really need to ensure that they have competent staff when they start interfering in tax affairs in this way!!!

    HMRC also don't help themselves. Every year when I submit my SA100 I have to go through the same farce of receiving an automatic refund of an overpayment of tax of £643, which they then send a demand for a week later. This stems from an error about 5 years ago, which they keep carrying forward through each year's tax code. They seem unable to stop this!
    British Ex-pat in British Columbia!
  • jrd
    jrd Posts: 23 Forumite
    Hi Jimmo et al,

    Thanks for helping.

    For the TY 2008-9 my P800D shows:

    Income Tax Paid
    PAYE £48,163 £11,634
    Emp. Ln. £3,499 £0
    Car Ben £3,000 £0
    Int £60 £12

    Total £55,622 £11,634.64.58

    Chargeable Tax is £12,784.80

    Total Adjustments £0

    Tax underpaid is therefore £1,240.16

    TY 2009-10 my P800D shows:

    Income Tax Paid
    PAYE £48,307 £11,413
    Emp. Ln. £6,727 £0
    Car Ben £3,900 £0
    Int £61 £12

    Total £58,996 £11,425.55.

    Chargeable Tax is £13,528

    Total Adjustments is £1,240

    Tax underpaid is therefore £3,342.61 (previous £1,240 plus the £2,102).

    Can see I've made an error in one of my previous posts when I stated the same amount of underpayment on both TY P800s - sorry for confusing the issue.

    Thanks

    JRD
  • dori2o
    dori2o Posts: 8,150 Forumite
    Part of the Furniture 1,000 Posts
    How long have you had the employer loan?

    Did you take out a further loan in 2009/10 or refinance the original as the difference between the 2008/09 and 2009/10 Employer loan benefit is quite high?
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • jennifernil
    jennifernil Posts: 5,755 Forumite
    Part of the Furniture 1,000 Posts
    edited 21 February 2012 at 12:45AM
    If the figures you have given are correct and the tax calculated and tax paid are correct, then you are due to pay a total of £4689.03 for those 3 years.

    You sinply have not been paying enough each year, likely due to the benefits being a year behind when put into your code, like Mike said originally.


    EDIT:


    However....

    The figures for 08/09 do not add up. Your income that year, from the figures you gave adds only to £54722, which is less than the £55622 that HMRC have. If this is correct, the tax due that year was approx £12514, you paid £11646, so an underpayment of about £868.

    This would make your total underpayment approx £4318.

    But......

    There is also a conflict between the P11D and the P800 for 08/09. The P11D shows benefits of £3750 + £5500, while the P800 uses £3499 + £3000. Which is correct? The difference would mean another £1100 in tax. So £5418!
  • jrd
    jrd Posts: 23 Forumite
    Hi all,

    Again thanks for your help.

    jennifernil

    The figures for 08/09 do not add up. Your income that year, from the figures you gave adds only to £54722, which is less than the £55622 that HMRC have. If this is correct, the tax due that year was approx £12514, you paid £11646, so an underpayment of about £868.

    This would make your total underpayment approx £4318.

    From the p800:

    PAYE £48,163
    Car Ben £3,900
    Employers Loan £3,499
    Int £60

    Total is £55,622

    I've checked it again and the numbers add up?


    But......

    There is also a conflict between the P11D and the P800 for 08/09. The P11D shows benefits of £3750 + £5500, while the P800 uses £3499 + £3000. Which is correct? The difference would mean another £1100 in tax. So £5418!

    The P800 is right.

    Just to mention....I already have in my P2 an underpayment restriction as follows:

    2010/11 - £228 from 30 December onwards (plus a change in tax code from 84L to K355 for the same period)

    2011/12 - £3,370

    I've had a company loan benefit for 15 years and company car for over 10.

    On another point I contribute to my company pension scheme through payroll deductions (circa £1900 per year gross) - is that taken into account?

    Thanks

    JRD
  • jennifernil
    jennifernil Posts: 5,755 Forumite
    Part of the Furniture 1,000 Posts
    edited 22 February 2012 at 10:38PM
    for 08/09 you said benefits of £3499 + £3000 in post #24, on P800.

    Pension contributions usually taken off before taxable amount calculated......are yours?

    I couldn't be doing with all this confusion and multiple code numbers! IMHO, far better to be in self assessment and get it right every year.
  • jrd
    jrd Posts: 23 Forumite
    Good news:

    A response from HMRC today following my letter.

    Bad news:

    It simply contains further P800's for the last 3 completed tax years with slightly different information to the previous ones, and doesn't answer the questions I asked.

    Letter number 2 on the way.
  • jrd
    jrd Posts: 23 Forumite
    Update:

    No response received to letter number 2 yet.

    However, received a payment request dated 2nd March stating I owe circa £3,400.

    Called HMRC (with the obligatory 20 minutes on hold) to clarify; was told "don't know how that number has been calculated" which didn't inspire confidence. After a bit of investigation, it transpires I apparently owe circa £100 from 2006-2007 in addition, plus 08/09 and 09/10 - 10/11 underpayment has been collected from me in the current tax year through my tax code.

    Never mind.....my quest continues.

    Not hopeful I'll receive a "proper" response to my 2nd letter if I'm honest.

    JRD
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    It could be worse. I got a reply today from a letter I wrote on 21 March 2011!!!

    It accepted my calculations reducing a 2007-08 statement of over £1,000 down to £300. But even after 12 months they could not read my letter properly, no mention made of the Esc A19 claim which took up half the letter.

    Expect drivel and you'll not be diappointed!
    Hideous Muddles from Right Charlies
  • suso
    suso Posts: 548 Forumite
    chrismac1 wrote: »
    It could be worse. I got a reply today from a letter I wrote on 21 March 2011!!!

    and you have waited 51 weeks for a reply before referring to a complaint or a tribunal, and there is not 150 posts relating to this already on the board about time delays. Stop imagining things and get a life


    chrismac1 wrote: »
    Expect drivel from me, I promise you'll not be diappointed!

    fixed that for you
    He's not an accountant - he's a charlatan
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