Husband has received letter saying he owes tax man more money

dori2o

gothicgal wrote: »

@missile, I've come here asking for help so why would I lie? we received no assessment. This is based purely on the P60 we provided when we queried why his tax allowance was so low

If you have not received an assessment how do you know he has underpaid tax?

Is the letter you mentioned receiving a tax code notification?

If so is the £815 the amount that has been taken away from his personal allowance?

gothicgal

twig1 wrote: »

I think there is definatly a mistake somewhere. £4000+ premium for medical insurance is too high as even if your husband was high risk/pensioner age the insurance premium on a employer group policy would not be so high.
When you are able to get the letter and the new coding they will have issued we maybe able to work out who has made the mistake.
The ex employer should be able to send a corrected return to HMRC if it is them. The employer should have issued a p11d to your husband which should show the value of all the benefits iin kind that he received whilst working for them . They should send this even if your husband is no longer working for them as this makes up the detail of the form they declare to the revenue. When the ex employer admitted it was a mistake what do you understand they meant?

Well we've taken that to mean that they should have told the tax man that he was only there for 4 months thus the bill should reflect this. We should probably go back and double check that now though

gothicgal

dori2o wrote: »

From the way this post has been going I'm going to assume he was employed by this employer, and then left 4 months into the tax year.

If this is the case, then the value of the medical insurance will be dependant on how much the employer pid for this benefit. Just because they left the employer after 4 month of the tax year it does not necessarily mean thet the medical benefit should be apportioned to the same period.

It is not uncommon for the employer to pay for a full years benefit (i.e they pay for it in a lump sum rather than on a monthly basis), even if the employee leaves that company part way through the year. It just means that the employee would have access to the medical insurance until the renewal date for the insurance. (This would also be the case if you started with an employer part way through the year. For example You start employment in June, you employer pays for the medical insurance in one lump sum in December of each year, you would be charged the whole years benefit charge as this is what the employer has paid).

You say you have sent a copy of the P60 to HMRC, have you also sent them a copy of your husbands P11d for that year?

The P60 will only tell HMRC how much salary yopur husband received and how much tax he paid, the P11d will detail the 'cost' of the benefits the employer paid for on your husbands behalf.

If you don't have a copy of that P11d you will need to contact the employer and ask them for a copy. They should have issued one to him regardless of whether he was still employed with the company at 5 April of the year in question.

If you disagree with the figures on the P11d, then you will need to speak to the employer as HMRC will always accept the information given to them by the employer even if it is incorrect. If you and the employer agree the figure on the P11d for medical benefit is wrong, then the employer would have to submit an amended P11d to yourselves and HMRC so that the assessment can be recalculated using the correct figures.

The figure does seem quite high for just 1 years medical insurance, does the calculation you have refer to underpaid tax carried forwards from eralier years?

I didn't realise that you could even claim on medical insurance if you had left the company!

Will check about the P11D

The letter makes no mention to underpaid tax being carried forward. It's all to do with the medical benefits apparently

ceeforcat

https://forums.moneysavingexpert.com/discussion/3811927=

I had a notion that the usename and the story seemed familiar, sad though it seems. . Is this thread unrelated?

Regardless, we really need to know exactly what the initial letter says.

gothicgal

It is and it isn't. That post had to do with a tax demand for 2005-6 and 2006-7 that I received. I wrote to HMRC as advised and I actually got money back!

This has to do with a letter my husband received after we queried why his tax allowance for this tax year was so low

ceeforcat

There are two issues it would seem but we really do need information.
1) What is the breakdown of the underpayment according to the letter?
2) What is the breakdown of his current code number? It should show personal allowances less deductions with an explanation. Furthermore, if he has been on this low code number since he left the relevant employer and receives no taxable benefits, he has been overpaying tax and probably still is.

This can be sorted and, for most people who advise on here, very easily too! But, other than the fact that he is £815 underpaid, we really know very little after quite a few postings and, as we really do want to help, need more detail.

dori2o

gothicgal wrote: »

It is and it isn't. That post had to do with a tax demand for 2005-6 and 2006-7 that I received. I wrote to HMRC as advised and I actually got money back!

This has to do with a letter my husband received after we queried why his tax allowance for this tax year was so low

But what was it you received that identified that you had underpaid £815.

You say you have not received a calculation, so how do you know your husband has underpaid?

As ceeforcat says, we need more information.

Exactly what have you received that details this £815.

What is the tax code and the breakdown of how it is calculated.

What year is the £815 due from

What figures are on the assessment? (if it is an assessment he has received)

What figures are on the P11d?

Until you provide such information there is nothing anyone can advise you on.

ZeBadger

Some companies tax you at source (without the need for a tax code adjustment) so you might not have to pay.
The P11D would answer this question. If it's all 0s then you are sorted.