Another P800 tale of woe

abitignorant

Hello all - asking for a little help here.

A number of us at work have recently received p800's stating that we have underpaid tax - anywhere between £900-£1100 for the 2011/2012 tax year.

I'm clueless when it comes to tax, but the p800 states that 'The amount of Medical expenses benefit included in your PAYE code was lower than the amount taxable'

For me that's £1077 that I have to pay back out of my tax code next year, but I'm one of those people who trust in their employers to ensure everything is tikityboo with their tax payments so it came as a bit of a surprise to me (and the other guys too).

I was tupee'd from one company to another on the 1st of July last year, so a p45 was submitted from my old employer to my new one, and a few additional post p45 payments were also made. It would seem though that there's still around £1200 that neither the HMRC or the payroll dept can account for...

So.. Can anyone help tell me what the next steps are? I know I had a small payout from some shares that were sold.. Would that make a difference (it was done through an seller, so I'm assuming the tax office were informed)...

Many thanks for any help - It's doing my head in.

twig1_2

Do you get the benefit of medical Insurance? The inland revenue usually use the previous years p11d submission as an estimate of the benefit and correct when the company informs them what the actual amount was. Maybe the change over meant that they didn't get informed or the amonuts had substantailly changed.

abitignorant wrote: »

Hello all - asking for a little help here.

A number of us at work have recently received p800's stating that we have underpaid tax - anywhere between £900-£1100 for the 2011/2012 tax year.

I'm clueless when it comes to tax, but the p800 states that 'The amount of Medical expenses benefit included in your PAYE code was lower than the amount taxable'

For me that's £1077 that I have to pay back out of my tax code next year, but I'm one of those people who trust in their employers to ensure everything is tikityboo with their tax payments so it came as a bit of a surprise to me (and the other guys too).

I was tupee'd from one company to another on the 1st of July last year, so a p45 was submitted from my old employer to my new one, and a few additional post p45 payments were also made. It would seem though that there's still around £1200 that neither the HMRC or the payroll dept can account for...

So.. Can anyone help tell me what the next steps are? I know I had a small payout from some shares that were sold.. Would that make a difference (it was done through an seller, so I'm assuming the tax office were informed)...

Many thanks for any help - It's doing my head in.

ceeforcat

'The amount of Medical expenses benefit included in your PAYE code was lower than the amount taxable'

On first glance, this does not appear plausible. Your underpayment is £1077. If you are a 20% taxpayer this means that the amount included in your code number was out by 5385, half that if a 40% taxpayer.

1) Did you receive a P11D from your employer and what did it show?
2) What was your code number for 2011/12 and how was it made up according to any forms P2 that you received?

abitignorant

@twig1 & ceeforcat It seems that the medical insurance wasn't the issue so much as some bulk payments - see below.

Well after a 3rd call with the Tax office it seems that although I have slightly underpaid tax on my medical insurance, the likelyhood is that it's the bonus and overtime payments that I received after my tupee that is the issue. My previous employer only taxed those two post p45 payments at 20%, when I'm a 40% tax payer.

Again, due to being a numpty I didn't realise that they had actually stated this in a letter. Which now begs the question.. Do I have to suck it up, or can I still claim that my previous employer did not apply the correct tax code (and ignorance to all things tax)? And then potentially risk a further tax investigation.

BTW, thanks for the speedy replies folks.