Tax dispute

Hibb58

Hi,

Having changed jobs and notifiying HMRC I was reassured a new tax code would be implemented. HMRC however failed to send a new code to my other employer and I ended up receiving a charge of £218 for a underpayment as a result.

I have disputed this with HMRC however they reject my claim on the grounds that yes, they did make a mistake however I should have known I was on the wrong tax code therefore it's my fault.


Is there any viable lines I can dispute this on the grounds that

1. They admit their mistake in not notifying my other employer ?
2. There assumption of me having an indepth knowledge of tax codes despite them being ones which would make a minimal difference which would go unnoticed by an a person not trained in tax codes?

Any advice would be great!!

Thanks

Savvy_Sue

Welcome.

There's not enough detail in your post to answer definitively: one of the most helpful posters on this board often says "Tax is all about the detail."

If you're willing to give us that detail, then if there's a glimmer of hope that you can appeal this repayment, we'll explain how.

But if the underpayment has arisen relatively recently, like last tax year, then it's highly unlikely.

The kind of detail would be:

date you finished your previous job,

what your tax code was on your P45,

what your total income and tax paid on that P45 was,

date you started your new job,

when you handed in your P45 or a P46 or new starter form requesting your employment status (as in any other jobs)

what information was on your P60 at the end of last tax year (tax code being used, gross income, tax paid)

whether you've had a P11D and the information on that

whether you have any taxable benefits via your employment, eg company car / health insurance and information about those

any other taxable income, eg pension

dates and any information from any P800 (notice of coding) letters you've received (I'm guessing you've not long had one of those!)

There may be more the experts ask for, but that's for starters ...

Hibb58

Hi

It was for the tax year 2011 -2012.

Essentially i had a part time job and started somewhere else full time. I notified HMRC that I would be doing this and working at both places and they said the would implement a new tax code. Following this in 2013 I received a letter saying i had underpaid tax. Their investigation concluded that they had failed to send my part time employer the new tax code and admitted this.

However they claim it is my responsibility stating I should have checked the letter they sent me with the new tax code and my pay slip and realised it was wrong and notified them.

The problem is I never received this new tax letter from them. Do they send there letters recorded or is there anyway they can prove it was sent as I'm finding it difficult for them to accept responsibility ?

DUTR

Hibb58 wrote: »

Hi

It was for the tax year 2011 -2012.

Essentially i had a part time job and started somewhere else full time. I notified HMRC that I would be doing this and working at both places and they said the would implement a new tax code. Following this in 2013 I received a letter saying i had underpaid tax. Their investigation concluded that they had failed to send my part time employer the new tax code and admitted this.

However they claim it is my responsibility stating I should have checked the letter they sent me with the new tax code and my pay slip and realised it was wrong and notified them.

The problem is I never received this new tax letter from them. Do they send there letters recorded or is there anyway they can prove it was sent as I'm finding it difficult for them to accept responsibility ?

HMRC, come on, do you expect to win?

Hibb58

Hmm I'd hope so hence why seeking help here to see if I have any chance and if so how

vacheron

From what I can gather you are not disputing that you should have paid more tax when you moved to your new job. You are unhappy that you have been asked to pay it in a lump sum at a later date due to a period of previous underpayment because they did not inform your new employer.

In this case then as long as long as you end up paying the correct tax owed then I don't see that you have a case. HMRC could even argue that you have benefited from the £218 interest free for the last two years and so the benefit was yours and the loss was theirs.

I recently reversed a claim from HMRC them where they demanded about £900 from me for the years 2006-2010 based on four P800 tax calculations they provided (one for each year), however their calculations were based on an incorrect assumption made on their part which I defended using actual figures from my bank and submitting my own P800's calculations.

While gathering data for my calculations I also discovered HMRC had failed to inform my employer of my coding change on 2 separate years despite sending me notices of coding stating that they would do so.

In the end they agreed with me and wrote off the claim (I actually ended up with a £760 refund).

However, if their figures provided for your earnings are correct then I'm afraid you will just have to pay up.

Pennywise

As Savvy Sue has said, the devil is in the detail. I think the most important piece of missing information is whether you gave P45 or P46 to your new employer and if it as a P46, which statement did you sign, A, B or C. Your new employer would have used your P45/P46 to apply a tax code to your new job earnings. Again, as Sue has asked, what tax codes were applied. We'll go round in circles for days unless you are upfront with the details asked for.

Savvy_Sue wrote: »

There's not enough detail in your post to answer definitively: one of the most helpful posters on this board often says "Tax is all about the detail."

If you're willing to give us that detail, then if there's a glimmer of hope that you can appeal this repayment, we'll explain how.

But if the underpayment has arisen relatively recently, like last tax year, then it's highly unlikely.

The kind of detail would be:

when you handed in your P45 or a P46 or new starter form requesting your employment status (as in any other jobs)

You've also moved the goalposts. In your first post, you said you changed jobs. Then you changed it to saying you had two concurrent jobs. It's detail like this that makes the difference. If you want help, you really do have to come up with the detail. See Savvy Sue's post #2 for a definitive list of information that people will need if you want them to help you.

CraigR

Hibb58 wrote: »

Having changed jobs and notifiying HMRC I was reassured a new tax code would be implemented. HMRC however failed to send a new code to my other employer and I ended up receiving a charge of £218 for a underpayment as a result.

Whilst we would need the full details to be able assess fully if you have any chance but this opening statement is pretty damning in my opinion.

You were aware that something needed to happen with your new job and contacted HMRC, they would have informed you of what the code would need to be and that they would issue it to you and your employer, the fact this didn't happen unfortunately doesn't excuse you from not checking the change had occurred on your payslips or wondering why you hadn't received a coding notice in the post.

I am not going to put words in your mouth but there are certain situations where you might have a case but from you have said so far I don't fell that is the case.