Recovery of PAYE underpayment - change of circumstances causing hardship.

hillbilly5

Just wondered if anyone had any info or links which I could use.

My husband owes approx £2200 from previous years PAYE from when he worked from a previous employer (who has now gone bust) and they hadn't informed the tax office of these.

Hubby recently had a letter from HMRC saying that they were altering the coding from April 2012 which would mean that he will be paying an extra approx £200 per month to repay the underpaid amount.

That wouldn't have been a problem, except that in November he had a routine op which the surgeon botched leaving him with nerve damage and being unable to work at present. At present he is only being paid £81.60 per week SSP. I only work part time and get £101 per week. We get £8.29 per week tax credits (although we have been told that in April we can reapply due to our current circumstances.) We also get £134 per month child benefit. We have 2 dependant children. Obviously with hubby only getting £81.60 per week we can't afford the extra £200 tax at the moment.

Does anyone know where there are any links to template letters which we could send to appeal to HMRC on the grounds of hardship to delay repayment, or even write off the amount? Or does anyone know where we can get help.

Time is of the essence as we need to sort this asap before the tax year starts.

Thanking you in advance of your help.

Mikeyorks

You don't need a template letter. Just contact them (see also Note 15 on the P800 Notes you received with the original) as below :

If paying the amount over a year would cause financial difficulty please contact HMRC on Tel 0845 3000 627 to discuss payment options, they may be able to spread the payments over two or three years

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm