HMRC Didnt Claim Back Tax

hobbgoblin

Hello All,

Just has my tax calculation through, and I have apparently underpaid by £449.89, I thought that looks familiar, just looked at an old calculation from 2011 and hey presto, I had underpaid by £448.89.

So they clearly havent claimed it back or something from years ago. So two questions really, What if they dont claim it back again? is this going to go on for years? And can I get in trouble for it? Its not my doing, the letters clearly state they will reclaim it through my tax code and I dont need to do anything.

Also is there anyway I can check I owe it?

di3004

That is so strange, my mate is actually waiting for a refund of the exact same amount, from 2008-09 year, they were going to use it on an overpayment made in 2010-11, but she received a letter last week stating they have investigated and it's the fault of the employer, so in this case the employer will be paying it back to HM customs, so she should therefore receive the refund of £449.89 from the earlier year, as they will not be using it now for the underpayment.

However..........they sent her a cheque last week it was not the amount of £449.89, but £270!!
The above was in regards of P800 tax calculations she received in the post last November 2012.

I am trying to help her on this and posted on another thread for help/advice as I've no experience with tax etc, I do hope this sorts out for you, or someone comes along with some advice for you, good luck.

Ask HM customs for a full breakdown on the relevant years. They should send in the post to you.

agrinnall

hobbgoblin wrote: »

Hello All,

Just has my tax calculation through, and I have apparently underpaid by £449.89, I thought that looks familiar, just looked at an old calculation from 2011 and hey presto, I had underpaid by £448.89.

So they clearly havent claimed it back or something from years ago. So two questions really, What if they dont claim it back again? is this going to go on for years? And can I get in trouble for it? Its not my doing, the letters clearly state they will reclaim it through my tax code and I dont need to do anything.

Also is there anyway I can check I owe it?

I assume you didn't pay it as a lump sum, so they should have altered your tax code to collect it over the year. In which case you would have got a P2 coding notice telling you how your tax code was changing, and your employer would have applied that new code to your pay. Did either of those things happen?

dori2o

When was the 2011calculation issued?

Are you sure this is the amount from 2011 which has been carried forwards and it is not just a coincidence that the 2 years have the same underpayment?

In order to check that this amount is owed post up your income details for the 2011 and 2013 tax years.

Check your previous tax codes and check that the final code on your P60 matches these codes.

hobbgoblin

They did send me a letter with the altered tax code. They just didn't apply it,I never thought to check.

The 2011 one is dated 13/12/11 and I do believe the underpayment has been carried over.

Savvy_Sue

If HMRC sent you and your employer a revised tax code, and your employer failed to use it, you may have an argument for the employer paying it back, not you - as happened to di's friend?

CKhalvashi

Savvy_Sue wrote: »

If HMRC sent you and your employer a revised tax code, and your employer failed to use it, you may have an argument for the employer paying it back, not you - as happened to di's friend?

I will mention that both of these are essential.

We've managed to wiggle out of any liability, on the basis we were never given the revised tax code.

CK

wronlaster

This is issue about 2 year old you can get all the detail about this .Why this happens with you how you can recover this .You can check all the detail in your file .still if your not clear it is best option that consult any expert .

dori2o

Savvy_Sue wrote: »

If HMRC sent you and your employer a revised tax code, and your employer failed to use it, you may have an argument for the employer paying it back, not you - as happened to di's friend?

The only problem I see with making a regulation 72 claim is that the underpayment is not from 12/13, it is from 10/11.

The employer is therefore not responsible for the underpayment arising, merely they didn't operate a code that would collect it.

The position as of 5 April 12 was that ther OP was underpaid £449.89, this position was the same at 5 April 13, the underpayment has therefore not increased.

Obviously it costs nothing more than the price of a stamp and a letter to make the claim, but IMO I don't think it would be accepted.

Savvy_Sue

dori2o wrote: »

The only problem I see with making a regulation 72 claim is that the underpayment is not from 12/13, it is from 10/11.

The employer is therefore not responsible for the underpayment arising, merely they didn't operate a code that would collect it.

The position as of 5 April 12 was that ther OP was underpaid £449.89, this position was the same at 5 April 13, the underpayment has therefore not increased.

Obviously it costs nothing more than the price of a stamp and a letter to make the claim, but IMO I don't think it would be accepted.

You may well be right, but I thought that if the employer had information and didn't act on it, then once it fell out of year it was their problem, not the employee's.

I've only had it happen in a different scenario, where the payroll people thought we had a Company pension plan rather than a Stakeholder pension plan, and had allowed tax relief when they should not have done so - the details are hazy so please don't pick me up on that!

Anyway, I talked to HMRC and their advice was that the tax could only be deducted from the employee's salaries for the 'in-year' underpayment, and the employer was liable to pay up for the previous years. I think we would have had a claim against the payroll people, but it wasn't enough to be worth spending time on!

hobbgoblin

Do I need to speak to HMRC then?Or do I need to try a section 72 claim?

Any advice on how to proceed would be much appreciated.