Tax Relief Error

jamesd

You had too much money paid into the pension, so taking it from the pension is the way to fix it and put you back where you should have been. The pension company will have to be aware of what is happening so they can correct your past contribution record and they and your employer are going to end up communicating with HMRC about it. The pension company has the money and it'll probably be them doing most of the work including paying HMRC.

zzzLazyDaisy

OP you should post this on the tax board. In certain circumstances where the employer has failed to deduct correct tax from PAYE because of their own error, it is the employer who is responsible for repaying the tax (even though the original liability was the employee's) and the employee is not liable to reimburse the employer.

coachtug

I shall follow your advice and move my dilemma to the tax forum, thankyou all for your help.

jem16

coachtug wrote: »

I shall follow your advice and move my dilemma to the tax forum, thankyou all for your help.

Would be a good idea to post a link back to this thread so that people have more information about what's happened.

Thrugelmir

zzzLazyDaisy wrote: »

In certain circumstances where the employer has failed to deduct correct tax from PAYE because of their own error, it is the employer who is responsible for repaying the tax (even though the original liability was the employee's) and the employee is not liable to reimburse the employer.

The error appears to have been made in paying employee contributions over to the pension fund managers. If this a large employer and the error has been running for a number of years. The repayment could amount to £'000's . The HMRC will not want to deal with individual employees to resolve the issue. Far easier to calculate from the returns submitted when the contributions were paid over.