tax Q re underpayment

meemo38

Firstly sorry i am clueless so apologies if i am asking questions that may seem daft to some of you, here goes...hubby has always worked part time and rarely gone over his tax threshold so we have never underpaid or overpaid tax until now....we have just received a letter to say he owes just shy of 600 quid for years 2011/12 and 2012/13 as he has not paid enough.....surely if you are given a tax code..ie last years was 8 something then its down to your employer to take more tax once you reach that amount????
They are wanting this in a lump sum...or ring if we can't, which is what we will have to do, but i did notice on one of the letters saying get in touch if you think the error is down to your employer not paying enough tax....would this be the case???
Thanks in advance
Michelle

jem16

meemo38 wrote: »

surely if you are given a tax code..ie last years was 8 something then its down to your employer to take more tax once you reach that amount????

It's not a case of no tax at all and then tax once you reach the threshold. Your personal tax-free allowance is split into 12 equal parts and you get one part each month. With a cumulative tax code, tax should be taken correctly over the course of the tax year. So something must have happened and we would need more detail to work out what.

Did your husband change jobs during those tax years or have more than once income?

What was the tax code used?

If you provide the figures from the P800 we might be able to help see what has gone wrong.

meemo38

he has worked for the same company for 12 years, so not sure whats happened, i will see if i can upload a pic or if not type out what it says, thank you

twig1_2

Has he been in reciept of any benefits or pension? All the catch up of unpaid tax seems to be since they have access to money people are receiving as benefits and state pensions.

meemo38

Right the 2011/2012 says
PAYE income 7788...total £7788 tax paid 0.00
income after taking away deductions £7788
Personal Allowance £7475
Less total tax allowances £7475

income tax chargable on this £313
Basic rate at 20% on 313=62.60
Tax chargable 62.60
tax underpaid 62.60

2012/2013
PAYE income ...total £11034 tax paid £206.60
income after taking away deductions £11034
Personal Allowance £8105
Less total tax allowances £8105

income tax chargable on this £2929
Basic rate at 20% on 2929=585.80
Tax chargable 585.80
plus other adjustments 62.60
Total tax payable 648.40
Tax underpaid 439.80


I hope you can understand all that :rotfl:

meemo38

twig1 wrote: »

Has he been in reciept of any benefits or pension? All the catch up of unpaid tax seems to be since they have access to money people are receiving as benefits and state pensions.

No nothing other than tax credits, but i assumed if there's a mistake with those its just altered on the next years award.

twig1_2

Have you checked the sums they say your husband was paid to the p60's he would have got from his employer after each tax year. The p800's read as if no tax is deducted. Sorry see you have changed your posting. Why does it say on the 2012/2013 pay 7788 total pay 11034
The p60's will say the annual amount paid and the tax deducted.

meemo38

twig1 wrote: »

Have you checked the sums they say your husband was paid to the p60's he would have got from his employer after each tax year. The p800's read as if no tax is deducted. Sorry see you have changed your posting. Why does it say on the 2012/2013 pay 7788 total pay 11034
The p60's will say the annual amount paid and the tax deducted.

sorry edited it...my mistake, i copied the first lot then just changed the amounts instead of re typing it all...didn't delete properly lol...will have to dig out the p60s

twig1_2

One good thing is that the tax underpaid is the 2012/2013 figure as they have added the 2011/2012 which is the £62 adjustment. Looks like they have deducted tax on £9318 did he get an bonus or have another source of income for £1896. Maybe a late end of year overtime payment?

meemo38

nope not had any other payments, no bonus ect, we are a bit baffled as like i say for personal reasons hubby worked a 20 hour contract for quite a number of years so never really ever earn't enough to pay tax until this last year when he fought to get a few more hours, maybe his best bet is to ring the tax office

twig1_2

Think you should be able to pay through adjusting the 2013/2014 tax coding so effectively pay be an extra deductions spread over that year as owe them less than £2000. I'd just check the p60 first to make sure the figures agree. If they do well the tax is payable. Dealing with the revenue can be stressful even if you can get them to answer the phone. The new paye system is now in real time so wonder whether there has been some problem at the employer end in implementing that.