Tax return incorrect due to mistake on P45

ChumpusRex

I'm getting investigated by HMRC because of a "discrepancy" on my tax return.

I'd filled it in based upon the P45s/P60s I'd received for the relevant year, but it turns out that one of the P45s was wrong (actually 2 of them were, but one was obviously complete gibberish, so I noticed that straightaway and didn't submit the tax return until I got a statement of earnings to clarify that).

It turns out that I've underpaid a bunch of tax because of this mistake.

Obviously, I'm liable for the underpaid tax, but am I likely to be liable for any penalties.

CLAPTON

maybe some details might help

ChumpusRex

I worked for a total of 5 employers in 2011/12, but due to also being self-employed I need to fill in an SA100 self-assessment form.

One of my employers sent me a P45 that basically said 0.00 earned, 0.00 tax paid, etc. - which was obviously wrong, as I had done substantial paid work for them. They would not correct the P45, but subsequently sent a statement of earnings and a letter telling me to disregard the P45. There don't seem to be any problems with this.

Another of the employers sent a P45 which did not include the entirety of the final month's salary. The remaining salary was paid to me after the P45 was issued, and several weeks after I had left that employer. HR didn't forward the final payslip onto me, so I never received any written confirmation of the final payment, although it was made by BACS sometime after I had left. I had forgotten about this late payment when it came to complete the tax return.

The problem is that HMRC have now launched an investigation, because the income stated on my SA100 did not match the employer's end-of-year return.

xylophone

You'll probably just have to explain about the mistake.

I recall that a relative filled in his SA form with (as usual) the details from his P60 but it subsequently transpired that these were incorrect (the fault lay with the issuing employer) - this resulted in an underpayment of tax.

The matter was sorted out and the source of the error found - the relative simply had to pay the tax owed without penalty.