Problems with HMRC

MTBaxter

Hi folks, I was hoping to get some advice on how to proceed with a complaint against HMRC.

The background to my issue is as follows. I started a new job in the middle of sept 2013. As I didn't have my P45 in time for starting my new job the HR dept in my new place of work placed me on the emergency 0T tax code and when I got my P45 from my previous employer I sent it on to the HR dept and thought everything would be fine. What could possibly go wrong? Lots as it turns out.

It appears that as I'd been added to the payroll before they had my P45 they couldn't accept the P45 that I sent on and had to wait for HMRC to update them. After a month I realised what was happening when I checked my Oct payslip and was still on the 0T code. I got in touch with HRMC who said they had sent the details on electronically. Another month passes and I'm still on the 0T code for my Nov payslip. Again I contact HMRC who say they'll send on the details and this time I continue to check with the HR dept to confirm the details have been received. After a week all appears to be sorted, HR has the P45 details and it we're looking good for Dec.

In my Dec payslip it turns out I've been overtaxed by approx. £1200 and on checking with the HR dept it appears that the P45 details they received from HMRC are vastly different from the P45 I received from my previous employer. The HRMC P45 details have me earning a lot more money and paying way less taxes. With 5 days to christmas I had to get an overdraft from the bank to cover the shortfall.

Thankfully it all appears to be sorted now, the HR dept has the correct P45 details and I've been assured that I'll get the overpaid tax back this month. What I was wondering is how I go about:

1. Getting back the money I'll pay in overdraft fees due to their incompetence.
2. Registering a complaint about incompetence with HMRC.

Apologies for venting my frustration, it's been a worrying few months. Any advice and / or information you could give me would be greatly appreciated.

agrinnall

While you may have a case for a complaint against HMRC, your main complaint should be aimed at your new employer, who allocated the wrong tax code when you joined. They should have used the Starter Checklist to assign your initial code, which is likely to have been 944L or something close (while it is the personal allowance it as also the current Emergency Tax Code); because they didn't they have elected to use 0T hence the excessive overpayment of tax.

http://www.hmrc.gov.uk/incometax/emergency-code.htm

http://www.hmrc.gov.uk/incometax/codes-basics.htm (see section on Other Tax Codes for 0T explanation)

jem16

MTBaxter wrote: »

Hi folks, I was hoping to get some advice on how to proceed with a complaint against HMRC.

The background to my issue is as follows. I started a new job in the middle of sept 2013. As I didn't have my P45 in time for starting my new job the HR dept in my new place of work placed me on the emergency 0T tax code

As agrinnall says, they should have got you to fill out a Starter Checklist and not just put you on 0T unless there was a pay run before they got the chance to do this.

http://www.hmrc.gov.uk/payerti/employee-starting/new-employee-nop45.htm

It appears that as I'd been added to the payroll before they had my P45 they couldn't accept the P45 that I sent on and had to wait for HMRC to update them.

That's not correct either. As they had obviously not received a tax code from HMRC for you, they were able to use the P45 details.

http://www.hmrc.gov.uk/payerti/employee-starting/new-emp-info.htm#7

In my Dec payslip it turns out I've been overtaxed by approx. £1200 and on checking with the HR dept it appears that the P45 details they received from HMRC are vastly different from the P45 I received from my previous employer. The HRMC P45 details have me earning a lot more money and paying way less taxes. With 5 days to christmas I had to get an overdraft from the bank to cover the shortfall.

Did you ask HMRC what details they sent to the employer?

1. Getting back the money I'll pay in overdraft fees due to their incompetence.
2. Registering a complaint about incompetence with HMRC.

The main incompetence seems to be from your payroll department who don't seem to have followed procedure. You should certainly take it up with them.

HMRC may have also messed up if they did indeed send the employer the wrong P45 details. If you can prove this, you could also complain to them. You can follow this guide;

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain/make-complaint.htm