TAX: Letter of appeal? Is it worth it?

mini8334

Dear People of Tax Knowledge,

I have posted regarding this issue before. However, I have more information that will enable greater clarity on the matter at hand.

I have today received two Self Assessment – Tax Calculation Forms returned to me from HMRC. Dated for the Tax years 2009-2010 and 2010-2011. Due to the Tax dating back so far they put be on self assessment for some reason. I never had any other job over this period and was in the UK as a student throughout. . .

For this time period I was working at a nation wide Children’s Care Home in the UK while a student studying at University. I would work Summer, Easter and Christmas break.

On arriving at the job in 2008 I filled out a P38 as I was told. However, the PAYE tax code I was placed on was NT and lasted for nearly 15 months.

Due to this being my first every part time job I was unaware I should have noticed the drop in income once I had achieve my personal allowance. However, this was not picked up by my employee or HMRC until this year.

Tax Owed 2009-10 = £4126.00 + (charges of £1687.50) = £5813.50
Tax Owed 2010-11 = 507.20

Am within my rights to write an appeal under:

Employer error in deduction of Pay As You Earn tax – search on google

As it states,

“What counts as an Error:
• Using an incorrect tax code
• Failure to follow the P45 / P46 procedure
• Incorrect deduction due to incorrect use of tax tables
• Incorrectly considering an individuals’ tax status
• Payment of gross pay without operating a code

As well as:

“The circumstances are that your employer or pension payer did not take reasonable care to operate PAYE and the error was not made in ‘good faith’. In describing a ‘failure to take reasonable care’, this means failing to follow proper instructions to deduct PAYE tax from your pay”

PAYE95011 - Reconcile individual: HMRC delay: ESC A19: employer error

When reviewing an ESC A19 claim, if you discover that the underpaid tax has occurred because of an employer error and not because of HMRC failure to make proper and timely use of information, then the employer should be pursued for payment of the tax.

Under-deductions caused by employer error commonly occur for the following reasons


This also closely ties in with:

PAYE95005 - Reconcile individual: HMRC delay: ESC A19: text of the concession

“Arrears of income tax and capital gains tax may be given up if they result from the failure of HMRC to make proper and timely use of information supplied by:

• An employer, if the information affects a taxpayer's coding
And
• Was notified of the arrears more than 12 months after the end of the tax year in which HMRC received the information indicating that more tax was due
And
• HMRC - Failed more than once to make proper use of the facts they had been given about one source of income

HMRC - Allowed the arrears to build up over two whole tax years in succession by failing to make proper and timely use of information they had been given

Could this all be under pinned in an:

PAYE95075 - Reconcile individual: HMRC delay: ESC A19: exceptional circumstances – google search

If you look at Example 2 it follows suit.



Many thanks for taking your time to read. Again, am within my rights to write an appeal under these circumstances?

Is it worthwhile looking into a Tax solicitor or legal advice?

Regards,

Mini

jem16

mini8334 wrote: »

I have today received two Self Assessment – Tax Calculation Forms returned to me from HMRC. Dated for the Tax years 2009-2010 and 2010-2011. Due to the Tax dating back so far they put be on self assessment for some reason. I never had any other job over this period and was in the UK as a student throughout. . .

I have a feeling that if you have already completed SA forms, you are unable to use ESC A19.

On arriving at the job in 2008 I filled out a P38 as I was told. However, the PAYE tax code I was placed on was NT and lasted for nearly 15 months.

When you completed the form P38, you signed a declaration to say that your earnings would be no more than £6475 for that tax year.

Tax Owed 2009-10 = £4126.00 + (charges of £1687.50) = £5813.50

To have a tax bill of £4126 you must have earned £27,100 in a tax year where you declared your earnings would be no more than £6475. I think even if you were able to use ESC A19, you would fail under the reasonable belief that your tax affairs were in order.

Is it worthwhile looking into a Tax solicitor or legal advice?

In my opinion you knew you hadn't paid tax when earning £27,100. You should now be looking to pay what you owe.