Paying Back 'Owed' Tax

mack83

My previous employer, a massive IT Company, made a mistake and paid their whole UK staff a large amount of money accidentally.

At the time, I had to pay them back, minus the tax that was already deducted through PAYE

HMRC have now re-written my tax code to reclaim underpaid tax, possibly believing I was the beneficiary of a rather good bonus that year (that I never actually benefited from)

HMRC never answer the phone when I call, but what's your thoughts. I'm about £400 down in my pay packet this month.

I may have some tax to pay retro-spectively as for some reason the government doesn't dynamically align tax codes, but as this may be predominantly due to an employer error, what are my options? thoughts?

Should I get the same bloke who sorted Starbuck's deal out?

xylophone

HMRC never answer the phone when I call,

Put pen to paper or finger to keyboard.:) Keep copies of all correspondence and send recorded delivery..
http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

kimdegsidash

You need to call HMRC on the number supplied with the tax coding notice and ask them what they are claiming you owe back taxes for.

It may be something simple like an incorrectly operated tax code for a period of time or it, as you suggest, may be an error to do with your employer's mistake.

The PAYE Coding Notice usually expalains in the notes what they have changed your tax code for.

You do not state for which tax year the tax code is for, nor exactly when (and therefore in which tax year) your employer made the mistake. Under PAYE employer mistakes are rectified mid-year so that should not have left you out of pocket for tax. There are always exception though and that is why you should speak to HMRC to get to the bottom of it.

Be prepared to be held in a telephone queue for about half an hour and call at 8am sharp!