Claiming ESC A19

jem16

SparkyG wrote: »

My husband's age is 61.

Ok - I just wanted to make sure he wasn't over 65 and entitled to the higher personal allowance ( although witj the income he is receiving it really wouldn't apply anyway).

I don't believe his current codes are correct then as he is still getting 2 sets of allowances.

You said that his pension is 810L and work is 133L. Put to gether and that is him getting a personal allowance of 9435 when the normal personal allowance is only 8105. Now that may be correct if he is getting a uniform allowance plus backdated uniform allowance but I can't see where the tax code has been adjusted to take back the underpaid tax.

What does the P2 Coding Notice say about the 133L tax code?

I have absolutely no idea what the 'employer benefits' or 'taxable expenses payments' are. It is just a pension, with no other benefits. We obviously didn't notice that at the time the P2 was sent.

The next month a new P2 was issued changing the tax code to 647L for Feb 2011. The benefits and expenses payments had disappeared!

No you are correct - it wouldn't make sense for a pension. However it certainly opens up an avenue to ask HMRC what was going on at that time as it doesn't make sense.

SparkyG

The P2 coding notice 133L is as follows:

Personal allowance £8105
Earlier years adjustment £484 (laundry allowance backdated)
Flat rate job expenses £80 (laundry allowance)
£8669


adjustment to tax rate bands -£1655
(to account for higher rate tax)
Underpayment restriction -£5684
(£1136.93 tax owing for 2010/11)
-£7399

Which leaves a tax free amount of: £1330

We were informed of the underpayment of £1136.93 for 2010/11 in January 2012, and assumed it was correct. It was only in August 2012 when they said he owed another £1714.20 for 2011/12, that we started to suspect an error had been made somewhere.

It seems that since he started disputing this amount, they haven't altered his tax code for August 2012 to take the underpayment of 2011/12.

jem16

SparkyG wrote: »

The P2 coding notice 133L is as follows:

Personal allowance £8105
Earlier years adjustment £484 (laundry allowance backdated)
Flat rate job expenses £80 (laundry allowance)
£8669


adjustment to tax rate bands -£1655
(to account for higher rate tax)
Underpayment restriction -£5684
(£1136.93 tax owing for 2010/11)
-£7399

Which leaves a tax free amount of: £1330

Ok that makes sense as far as the employment tax code is concerened.

However it basically means that his pension should not have a tax code of 810L as he is getting the £8105 twice. His pension code should be BR and you need to ask them why it isn't as it will currently be running up an underpayment for this tax year. It needs to be changed asap.

We were informed of the underpayment of £1136.93 for 2010/11 in January 2012, and assumed it was correct. It was only in August 2012 when they said he owed another £1714.20 for 2011/12, that we started to suspect an error had been made somewhere.

There is definitely something odd going on but it is difficult to see where the error is.

Start as I suggested by asking why they changed the pension code from BR.

It seems that since he started disputing this amount, they haven't altered his tax code for August 2012 to take the underpayment of 2011/12.

What tax codes were used on his last pension and employment payments?

SparkyG

jem16 wrote: »

What tax codes were used on his last pension and employment payments?

August 2012 payments:

Work 133L

Don't get a statement for pension every month, but sure it is 810L as the net amount is the same as in April 2012, when the last statement was sent.

Looks like he is running up quite an underpayment for 2012/13 now as well!

Thanks for your advice, and he can contact the tax office first thing on Monday to try and sort out this mess.

jem16

SparkyG wrote: »

Thanks for your advice, and he can contact the tax office first thing on Monday to try and sort out this mess.

I hope it all works out for you.

Let us know how it goes please.

SparkyG

Thank you for all your help. You've certainly made things a lot clearer. I will let you know what happens.

SparkyG

jem16 wrote: »

I hope it all works out for you.

Let us know how it goes please.

Phoned HMRC this morning with copious notes, and all figures to hand. The advisor said it was beyond her scope, and to write in. She said there is a 4 week turn round at the moment.

We will still be persuing concession A19, and will use all the information we now have to support the telephone claim that my husband made on 31/08/12.

I did make the point on the phone that 2 personal allowances are still being given for the current tax year, and could they change it as a matter of urgency.

Will let you know when we get a reply to the letter. Thanks again for your help, it's much appreciated.

jem16

SparkyG wrote: »

I did make the point on the phone that 2 personal allowances are still being given for the current tax year, and could they change it as a matter of urgency.

I would follow this up with a phone call to at least ensure the tax code is amended right away.

The ESC A19 would need to be in writing I would think.

SparkyG

jem16 wrote: »

The ESC A19 would need to be in writing I would think.

They did put the call through to another department that registered the claim and took brief details over the phone, but I am now armed with a lot more ammunition to put in writing to back it up.

SparkyG

I am over the moon! HMRC have finally conceded and are sending a cheque for the amount of underpayment they have already received, and are cancelling the rest.

This has not come about without a lot of blood, sweat and tears. Many letters and phone calls, and an awful lot of time, but persistence has finally paid off.

I was so outraged at the number of mistakes and the sheer incompetence that HMRC freely admitted to, while still maintaining it was our job ot point out their mistakes. In my last letter which was a request for an 'ESCA19 Complaint Review', I stated that we were prepared to take it to a tribunal, and that was no empty threat. So if anyone finds themselves in a similar position, don't give up, however much they try and wear you down!

Thank you very much to all those who gave advice on this thread, especially Jem16