P800 received - Under paid tax

GeeJay86

Hi all,

I'm just wondering if I have a leg to stand upon receiving a P800 stating I have underpaid tax for year 2010-11.

In a nutshell for this tax year I had 3 jobs. One was a long term position for 7 years, ending in June 2010. Next job I had a company car June - December (car was august 5th to dec 31st) then 1st Jan 2011 I started my current job, no car.

The basic maths adds up. I earned x amount, plus company car BIK of £990 = z.

z - personal allowance (£6475 for that year) = Q

Q * 20% = tax I should have paid, I have paid £249.80 less.

Thing is I fail to see where the shortfall has come from through PAYE. By the sounds of it it could be the car perhaps? But my tax payment increased by £27 in October and my tax code changed from 647L to 485L. I had assumed this was the taxable benefit of the car, thus I have paid the tax for this?


All of this aside, I have been reading about an ESC A19 form, am I entitled to claim on this?

"The circumstances are that HMRC should have used the information provided within 12 months after the end of the tax year in which it is received to notify the taxpayer of any arrears."

So they would have been notified of all my changeovers before 5th April 2011, so should have contacted me about the arrears by 5th April 2012?

The way I see it, the HMRC either didn't process the information within 12 months, or my ex employer didn't provide information in time?

Tax is so confusing so any help would be appreciated

I know if the shoe was on the other foot and they owed me tax from 5 years ago for example I'd cash the cheque and ask no questions but a completely unexpected tax bill in this climate even if it is £30 a month for next year makes a difference if it can be avoided.

Many thanks

Chieveley

Have you called the tax office? I have had a P800 also - showed I had 2 sums of JSA and the wages from a temporary job. My 1st thought was identity fraud but it seems the tax man did not get a reply from the jsa so "assumed payments made" of 3k and wanted £500+ tax repaid. The lady I spoke to admitted many P800 have been generated and she was going to remove the extra entry and re-issue the P800.

How many people will just accept the paperwork as it is quite difficult to understand and time consuming to reach the tax office (listen to the 3 minutes of "press1, press 5" before going onto the music on hold)

suso

GeeJay86 wrote: »

Hi all,

I'm just wondering if I have a leg to stand upon receiving a P800 stating I have underpaid tax for year 2010-11.

Unfortunately not.

GeeJay86 wrote: »

In a nutshell for this tax year I had 3 jobs. One was a long term position for 7 years, ending in June 2010. Next job I had a company car June - December (car was august 5th to dec 31st) then 1st Jan 2011 I started my current job, no car.

The basic maths adds up. I earned x amount, plus company car BIK of £990 = z.

z - personal allowance (£6475 for that year) = Q

Q * 20% = tax I should have paid, I have paid £249.80 less.

Thing is I fail to see where the shortfall has come from through PAYE. By the sounds of it it could be the car perhaps? But my tax payment increased by £27 in October and my tax code changed from 647L to 485L. I had assumed this was the taxable benefit of the car, thus I have paid the tax for this?


All of this aside, I have been reading about an ESC A19 form, am I entitled to claim on this?

Again unfortunately not. When you tax code changed you should have received a new tax code notice what did this say on it, regarding that the code had been reduced? If the code was lower because of the car benefit it would have been detailed at that point.

If the code was reduced because of the car, then this would have generated a potential underpayment for 2011/12 and your code would have been lower, what was the code for 11/12 ? 747L was the standard without any company benefits.

GeeJay86 wrote: »

"The circumstances are that HMRC should have used the information provided within 12 months after the end of the tax year in which it is received to notify the taxpayer of any arrears."

So they would have been notified of all my changeovers before 5th April 2011, so should have contacted me about the arrears by 5th April 2012?



The way I see it, the HMRC either didn't process the information within 12 months, or my ex employer didn't provide information in time?

Your employer had to provide details of the company vehicle by July 2011 (this falls within the 11/12 tax year)

So HMRC have 12 months from 5/4/2012 to notify you of the underpayment. So the information has been processed in time.

GeeJay86 wrote: »

I know if the shoe was on the other foot and they owed me tax from 5 years ago for example I'd cash the cheque and ask no questions but a completely unexpected tax bill in this climate even if it is £30 a month for next year makes a difference if it can be avoided.

Many thanks

Not sure why you are quoting 5 years ago as this underpayment occurred just 3 years ago, and the under payment comes to
£249.xx then this is just £21.00 a month

Even so with the increase in the personal allowance this year from £8105 - £9440 You will be paying £267 less tax this year, so you shouldn't really notice it.