Tax office mistake

hubb

My wife is livid. In Feb this year she flagged a tax allowance up that she was given as she thought it seemed a lot (£700) for the year. She phoned and wrote to HMRC and they assured her that it was correct.

This month she finds her wages down by £50. She phoned to ask why (after a very very long wait again) and they said that it was in fact a mistake and they have to take it back from her and put her on a new code.

Basically, I just need to know if there is anything she can do as it stinks and has left her short right through Christmas. She seems to think she can't. Isn't there anyone to complain to as she has her letter as evidence as well as the one she sent them ?:(

xylophone

Today's Daily Mail page 50 -

"When HMRC investigated your case, a spokesman admitted - 'We've really made a mess or Mr S's tax affairs - we can't apologise enough. We gave him duplicate personal allowances when we had full knowledge of all his income.... it's our error...."

In this particular case HMRC has written off the taxed owed and paid compensation.

It might be worth a letter of complaint?

System

hubb wrote: »

My wife is livid. In Feb this year she flagged a tax allowance up that she was given as she thought it seemed a lot (£700) for the year. She phoned and wrote to HMRC and they assured her that it was correct.

This month she finds her wages down by £50. She phoned to ask why (after a very very long wait again) and they said that it was in fact a mistake and they have to take it back from her and put her on a new code.

Basically, I just need to know if there is anything she can do as it stinks and has left her short right through Christmas. She seems to think she can't. Isn't there anyone to complain to as she has her letter as evidence as well as the one she sent them ?:(

HMRC don't usually start collecting arrears of tax part way through a tax year. They normally do it from the start of the next tax year.

If she was previously underpaying tax, is it possible that they've just fixed the underlying problem and that she's now paying the correct amount?

chrismac1

The one thing that doesn't ring true in all of the above is the HMRC spokeseman's comments. I've never known HMRC people speak like that about ANY case, even pursuing a mentally ill taxpayer for 2 and a half year's for somebody else's tax.

Normally they wriggle around - blame the taxpayer, the employer, the dog, the eclispse of the sun. Anything they can think of to avoid accepting any part in the mess.

To the OP I am sorry but you join a long queue of tax muck-ups. When the Uk tax service improves to being average I will change the strapline on my posts. At current rate of progress this should be sometime around 2070.

hubb

Surely there is a correct procedure of complaining ?

Dazed_and_confused

People on MSE would be able to help if you gave proper details. What was the £700 and what changed this month, as ceiberman says underpayments dont normally start being collected part way through the (tax) year, although they may start trying to make sure this years tax is collected. This is separate from last years tax - have you had a calculation/assessment/bill for 2011-12?

How many jobs/pensions eye does she have and what tax codes are used by the employer(s)/pension company(s) might be a start

System

Based on the new deduction it could be split allowances 2012-13. Eg. £7400 to source A and £700 to source B.

If this was changed and the £700 removed from B and replaced with BR it could result in an extra £50 lump sum deduction around PAYE month 6. But I'd expect a £50 refund on source A to offset this. Unless something else had gone wrong previously.

hubb

Well my wife sent them a letter with all details of phone conversations etc and they have completely ignored the fact that they made a mistake and why they are taking £50 a month off her till April next year. No opology, explanation, nothing. Just a standard letter with the new tax code.

It would be a different story if she owed it to them though. I wonder what they would have done if she had written to Radio 4 you and yours or watchdog
.

Dirk_Gently_2

Presumably when her employer got the new tax code they started applying it immediately, which resulted in the reduced pay as she would, as far as their calculations would show, have not paid enough tax through that year.

System

hubb wrote: »

Well my wife sent them a letter with all details of phone conversations etc and they have completely ignored the fact that they made a mistake and why they are taking £50 a month off her till April next year. No opology, explanation, nothing. Just a standard letter with the new tax code.

It would be a different story if she owed it to them though. I wonder what they would have done if she had written to Radio 4 you and yours or watchdog
.

If your wife asked any questions or raised other issues she should get a full response. This will be sent separately from the tax code and may well still be in the post system.