Tax underpaid error nightmare

22helz

My husband started new job & started receiving pension in July 2010.Underpaid by £862 in 2010/11 due to tax code error by HMRC but not able toclaim under ESC A19 as we informed them with 12 mths of next tax year. This is where the problem started. HMRC informed him by letter numerous times that theywould collect the underpayment in 2011/12 tax year so assumed they would takeit and received few tax code changes but they didn't take the underpayment. Next mistake by HMRC tax codes changed again in error in March 2012 when he changedjobs so now underpaid by £1709, again he informed HMRC Nov 12 and they saidwill start taking the underpayment so more tax code changed making it difficultto keep track of.

Nightmare bit - Just received pay slip for Jan 13. Paid £2109 gross with taxcode (BR). Tax taken £1531.

Issue was looked at by HMRC complaints but as they have informed him alongthe way, they don't see a problem. Have received 14 changes in Tax codes overthis period making hard to follow.

HMRC haven't collected the underpayment and our circumstances have changed now, which will leave us in financial difficulty if they take it all within thenext tax year, twin babies and maternity pay stopping soon.

Is it worth going to the adjudicator?

Can HMRC take £1531 in tax in 1 month, won't be able to pay bills thismonth?

Any help gladly received

xylophone

http://www.out-law.com/en/articles/2012/september/taxpayers-right-to-pursue-complaints-about-hmrc-says-expert/ might be of interest.
http://www.hmrc.gov.uk/sa/understand-calc.htm

minimiser

I am paying back owed tax at £25 per month over 2 years. They were very accommodating and did not demand a lump sum which I could not afford. Talk to them.

Dazed_and_confused

What did you do when the payslips in 2011/12 didn't show the same tax code as the HMRC notice showing the underpayment was being deducted? Did you ask for the code to be re-issued to your husbands employer?

Maybe this one off deduction has cleared lots of the tax owed? If you post up the latest payslip info (tax code, pay, pay period etc) and how the tax code is made up from the code notice sent by revenue there are some experts on here who can check what will happen fron now on

22helz

Dazed_and_confused wrote: »

What did you do when the payslips in 2011/12 didn't show the same tax code as the HMRC notice showing the underpayment was being deducted? Did you ask for the code to be re-issued to your husbands employer?

Maybe this one off deduction has cleared lots of the tax owed? If you post up the latest payslip info (tax code, pay, pay period etc) and how the tax code is made up from the code notice sent by revenue there are some experts on here who can check what will happen fron now on

We are not great with all this. We didn't notice tax codes issued didn't match pay slip. His employer have had 4 tax code notices to put since March 2012 to change code to BR and they have just changed it, not sure why they haven't changed it before now.

Have found out that last tax code issued on 12/12/12 to his employer BR was issued as accumulative and not M1 (week 1 month 1 basis) which is why £1531 tax has been taken.

Info - Tax code - BR, Pay 2045.82, Tax 1531.00 & NI 169.42 Net Pay - 345.40

Thanks