Self Assessment Tax Return dispute

patanne

There is still something odd about the £30 deductions!! You really need to check this out!

terric

@Davide123 I was never asked, nor given any form of documentation to complete. In hindsight, I should've asked for this but at the time I just assumed the tax office would give them the correct code as my full-time job was PAYE also. It also turns out that on my P60 is the wrong address, so any pay slips etc. have been going to 16 and not 1b. Again, something I should have realized but as the job was a retainer basis, it was easy to fall by the wayside.

@patanne My P60 shows £57 tax paid and £270 NI paid over the year, I was being paid £15/hour for 10 hours per week, and receiving £119.85 so I "was" definitely paying tax. I'm pursuing this with the employer at the moment, but in the meantime I've had to write to HMRC as they wouldn't give a toss. It could go 1 of two ways I guess, 1. They (2nd employer) owes me money, which I can use to pay HMRC or 2. I've been getting taxed, and then drip-fed rebates through the year.

patanne

I'm sorry to keep on about this but you really do need to find out what all the deductions were or did you only work there 11 weeks? Did they make deductions of some sort for holiday pay or a wage advance or something similar as the figures just do not add up. Normal take home pay based on £150 should be much closer to £140 than under £120. Can you be sure they weren't paying you £12 per hour not £15?

terric

@patanne no need to apologize at all, I appreciate all the help and advice I get!

I am pursuing this, I'm 100% certain that it was 10 hours per week @ £15/hour, unfortunately they don't have any of my pay slips at office - they went through a department transfer during 10/11 and because I never claimed my pay slips they destroyed them.

Working out tax at BR (not the tax code my P60 says I was on which is 647L) then I'd be earning around £119/month so it seems as though I've been paying BR tax... on a non-BR tax code... either way I can't keep HMRC waiting so have had to respond by the deadline they set and I'll pursue the employer on my own time. Will keep you posted.

Edit - what I did find going through my bank statements is the odd (about 5 of them) payment of £20 - £30, which from an old email I sent questioning this was a tax rebate, so it's possible that I've been paying BR tax (on a non-BR code???) but getting rebates through the year.

patanne

They may have destroyed the payslips but they have to keep financial records for several years, so they must have records of what they have paid you & what they have deducted/refunded. Try telling them that you are going to have to tell HMRC that there is a discrepancy in the figures (tactfully of course), it may help them think a little harder!

terric

So I've finally heard back from HMRC (literally today), and they've given me until 31st May (yes, 3 weeks) to come up with £1,905. Everything that was said on my letter has been ignored, and there is literally no way I can afford to pay this.

I've got twins on the way in less than 1 month (informed them of this in the letter) and this wasn't my fault. Admittedly I should've paid more attention years ago when I knew less, but assumed as it was PAYE everything would be sorted out between HMRC and the employer. Even if my employer didn't know about my second income, HMRC would have because both jobs were PAYE.

I'm not paying this in one sum I'm afraid, and I'm ready to start building a case for court on this. Does anyone have any advice? At the WORST (for me) I could pay this over 12 months via my current tax code, leaving me ~£160/month worse off for a year, when I'm already paying over £700/month in tax + NI combined. I think I'll leave my job after this and go on benefits.

Dazed_and_confused

Surely this was your fault as you didn't include the income on your tax return. All HMRC are doing is making sure you pay the correct amount of tax, albeit after you had received the income. That is merely putting you in the same position as someone who had the correct tax deducted at the time.

The £1905 is only the beginning. As you haven't paid this you will no doubt be accruing interest charges and could get a late payment penalty eventually, never mind the penalty for making an incorrect return.

As we are part way through the current tax year the tax won't be included in your code now and I can't imagine it will be included in next years code as it should have been paid in January 2012.

How is this going to end up in court?

terric

Dazed_and_confused wrote: »

Surely this was your fault as you didn't include the income on your tax return. All HMRC are doing is making sure you pay the correct amount of tax, albeit after you had received the income. That is merely putting you in the same position as someone who had the correct tax deducted at the time.

The £1905 is only the beginning. As you haven't paid this you will no doubt be accruing interest charges and could get a late payment penalty eventually, never mind the penalty for making an incorrect return.

As we are part way through the current tax year the tax won't be included in your code now and I can't imagine it will be included in next years code as it should have been paid in January 2012.

How is this going to end up in court?

This was "partly" my fault. The thing is, even though I was filling in SA returns during this period, my actual self employed income was £0. I had two jobs at this time, and BOTH were PAYE. My self employed status was irrelevant at this point, because I was earning no self employed income, ALL income was via PAYE.

This second employment (which was a retainer renewal, where the previous P45 2009 - 2010 for the same employer had a tax code of BR) ended up on the same tax code as my primary employment, and since I wasn't given a P46 or whatever it is to complete, remained this way. Couple this with the fact that I was on £150/week retainer and £119.85 was going into my bank every week, I assumed I was paying tax on this income. This second employer had an incorrect address (something I've found out recently) for me, and so I never received any pay slips. My fault for not addressing this earlier, but as I thought I was paying tax (due to the figures) I just let it be.

I'm not saying I don't owe HMRC this tax, and I'm willing to pay it in full... just not all at once! There's more to this, and I'm not being held ENTIRELY responsible for this !!!! up. HMRC are at fault, they knew I had two incomes via my NI number and said / did nothing. The employer is at fault for not administering my employment properly. I'm at fault for not knowing more back then, and trusting simple figures.

bobthesod

Isnt £30 20% of £150?, so that would be correct.
eg i get a firms pension and it is taxed as if it were main employment, i also get State pension, and that is taxed as 20%, and my part time job, well all of that is taxed at 20%.So the 150 will have a tax demand of 30 IF all the allowances have been used up on the first employment.

terric

bobthesod wrote: »

Isnt £30 20% of £150?, so that would be correct.
eg i get a firms pension and it is taxed as if it were main employment, i also get State pension, and that is taxed as 20%, and my part time job, well all of that is taxed at 20%.So the 150 will have a tax demand of 30 IF all the allowances have been used up on the first employment.

It should have been BR because all the personal allowance was used in the first income (which was my primary job, the second employment was a development contract paid on a retainer basis).