How do I convince the tax man I didn't get paid 42k for 10/11?!

Izual_Rebirth

How do I convince the tax man I didn't get paid 42k for 2010 - 2011?

The Tax man thinks I got paid 42k which is 20k more than I actually got paid. Obviously I only paid tax on the 22k I actually earned but now they are expecting me to pay them another few 1000 tax I "owe" them.

I have sent them my P60 for that year as well as telling them I only earned £22k however I have just got a letter back saying exactly the same as the original stating I earned £42k and they will be altering my taxcode to regain the missing tax. No explanation of why my P60 wasn't enough or what I can do to fix the issue.

Frustrating. Just rang them and all the women on the phone said was "send in a letter explaining why you think the calculation is wrong and someone will get back to you in 4 - 6 weeks with a response". No help what so ever...

Any advice?

jem16

Izual_Rebirth wrote: »

Frustrating. Just rang them and all the women on the phone said was "send in a letter explaining why you think the calculation is wrong and someone will get back to you in 4 - 6 weeks with a response". No help what so ever...

Did you tell her that you had already written in with your P60 and ask if this has been received?

Have you asked where they have got the idea that you have earned £42k from?

agrinnall

You do know that last year was 2011-12 not 2010-11 don't you?

GlynD

Phone them and ask them. If necessary provide copies of your bank statements.

Izual_Rebirth

jem16 wrote: »

Did you tell her that you had already written in with your P60 and ask if this has been received?

Have you asked where they have got the idea that you have earned £42k from?

Sorry. In my rush to get the post up I missed out some vital information.

They believe I had worked two jobs that tax year. Both jobs for the same company I currently work at. I have been to my HR already to discuss this with them although they aren't sure what the issue is. I believe it's either to do with the fact that I moved from a 3 year contract to a permanent contract half way through the year. Or it's because the company I work at changed hands half way through the year. The difficult issue is that all payroll was outsourced and I believe one of them has now gone out of business.

Izual_Rebirth

agrinnall wrote: »

You do know that last year was 2011-12 not 2010-11 don't you?

Ah yeah.My bad. If I could edit the topic title I would.

jem16

Izual_Rebirth wrote: »

Sorry. In my rush to get the post up I missed out some vital information.

They believe I had worked two jobs that tax year. Both jobs for the same company I currently work at. I have been to my HR already to discuss this with them although they aren't sure what the issue is. I believe it's either to do with the fact that I moved from a 3 year contract to a permanent contract half way through the year. Or it's because the company I work at changed hands half way through the year. The difficult issue is that all payroll was outsourced and I believe one of them has now gone out of business.

In a case like that, your P60 is probably not going to be enough then. You really need your employers to confirm what you are saying and that it's all just one employment.

jem16

Izual_Rebirth wrote: »

Ah yeah.My bad. If I could edit the topic title I would.

You can edit your title. Just click Edit and then Advanced and you will be able to do so.

chrismac1

This stuff is par for the course. On this site alone there are at least 10 posters in the past two years whose income has been doubled by the HMRC patsies.

You could hope that HMRC can sort this out with the employer. All too often this turns into a finger-pointing exercise with HR reluctant to do the hard yards to dig back into the archives, and HMRC stonewalling with jobsworthiness.

I prefer to take the initiative and suggest the following:

1. Send in your P60 again with payslips if you still have them.
2. If not, send in p60s from the preceding and following tax year.
3. Ask HMRC for evidence of this other employment you had, with employer reference and name, gross pay and tax paid under that employment.
4. Point out that in your view you have essentially worked for the same employer all this time, albeit with restructurings, and your salary did not suddenly double one year just to drop back down again the next.

If they stonewall the data request in point 3 or give you a stock reply which completely ignores it, request it under the Data Protection Act.

If this does not work, then in your next letter raise a Complaint Case.

In general, get them on the back foot by asking for specifics, and keep your foot on their throat until they run out of air.

dori2o

Simple answer.

It looks like either HMRC have received 2 P60's, or they have received a P60 and a P45, yet the P60 shows the total for the year earned at both entities of the employment you had in 11/12.

Essentially, despite what chrismac may tell you, this is likely a !!!! up at the employers end. Probably caused by an accountant, much like chrisma who doesn't know what they are doing, again just like chrismac.

First things first, ask HMRC to send you an employment history which includes pay and tax details for 11/12. Ask them to identify on the employment history letter if this information has come from a P45 or a P60 (they can do this by putting P45 or P60 directly after the name of the company on the letter).

Once you have this information you can then show this to your employers payroll department and ask them to provide you with a letter which confirms the correct information, and explains about the transfer of the employment from one company to the other.

The employer may also have to send in a revised P60 if theirs is incorrect.

Once you have this information write to HMRC and include this information, they will then be in a position to review the reconciliation.

You can ask HMRC to deal with this by asking them to contact your employer, or you could make a claim for employer error. The problem wth this is that HMRC cannot do anything until your employer responds to them. if that takes 2 months then it takes 2 months.

Doing this the way I have advised keeps you in control of the information and in control of the timescales.

chrismac1

You have a PAYE person whose income goes:

20,21,22,42,23.

For the £42k year you have two P60s - end of year returns - but no P46s or P45s showing the person having left one job and started another. The address on the two employer records on the P60s is the same.

You assess the person as having an income of £42k. Are you:

A. A patsy.
B. A world class tax collection organisation.

Answers on a postcard please to Lin Homer, HMRC Towers, Cloud Cuckoo Land.