Incorrect p60 employers error

Chupachups

Hi

My employer messed up my p60 for tax year 2012-2013, as a result hmrc have contacted me and told me I owe £409, having done my maths this is correct and I owe the money.

But as it was my employers error that didn't put in correct figures on my p60, do I have any rights to appeal? as I will struggle to pay the £409.

Thanks.

Sinhanada

As far as I am aware you will still be liable for this. HMRC will most probably adjust your tax code for 2014/15 and recover the money in this way though. I would advise you call them and discuss

purdyoaten

Chupachups wrote: »

Hi

My employer messed up my p60 for tax year 2012-2013, as a result hmrc have contacted me and told me I owe £409, having done my maths this is correct and I owe the money.

But as it was my employers error that didn't put in correct figures on my p60, do I have any rights to appeal? as I will struggle to pay the £409.

Thanks.

In what way was it 'messed up' - how does the P60 figures differ from those shown on your March 2013 payslip?

Chupachups

purdyoaten wrote: »

In what way was it 'messed up' - how does the P60 figures differ from those shown on your March 2013 payslip?

In June 2012 I started work for a new employer, and went through a tupe process, the p60 generated did not include earnings from April 2012 to June 2012 (from old employer), apparently there was an error in the information from the p45 being carried across, which resulted the p60 being approx £3000 short.

The frustrating thing is that my current employer was aware of this last year but didn't tell me, this has also effected approx 50-100 staff.

(The 2013 march payslip showed same figures as p60)

Pennywise

OK, let's get to the detail.

A P60 should just be a statement of fact to confirm the amount of pay and tax deducted. So first thing, are the figures on the P60 the same as the figures on your payslips?

If so, the P60 isn't wrong. If not, then the P60 is wrong and needs correcting by your employer.

Your employer may well not have deducted the right amount of tax from your wage, resulting in the underpayment, but if that's the case, you owe the money. If the employer hadn't made a mistake, you'd have had more tax deducted from your payslips. So the demand is merely putting you back where you should have been had they not made the mistake.

Perhaps you could confirm which of these two cases apply here.

Chupachups

The p60 matches the payslip from current employer, but it does not include payslips from previous employer (april 2012 - June 2012) as I said due to an error in p45 data being carried accross. The change of employer was a tupe process, I had same job but different location/emloyer. I am not disputing owing the money, but as this was an error not due to me, was wondering if my employer has any responsibility on this, I am going to struggle with this unexpected £409 bill!

(Also the p60 in question shows breakdown of current employer and previous employer, but the total was just for current employer, if it hadn't shown that as a breakdown, I may gave picked up as it being an error at that time! )

comeandgo

So you had previous pay and I presume tax paid which was not included when you started new job so it would look like you had no prior earnings and you would have been able to get your first pay tax free until you catch up with your tax code. If this was the case then you did not pay enough tax and you do have to pay it even though you had no involvement in error, you did benefit with paying reduced tax for that year.

zygurat789

So you started work for your new employer, after the transfer, in July 2012 and due to the P45, which since this was a TUPE you would not have received, not being processed by your new employer you had £8109/4 = £2027.25 tax free pay allowed for a second tiome in the tax year resulting in an underpayment of 2027.25*.20 = £405.45.
This would appear to be through no fault of your own but you or one of the others should have realised that your tax was very wrong since there would have been no deductions.
How do you know your new employer was aware of the situation since you weren't told?
It would also appear that your new employer acted in bad faith since it should, and apparently was, aware that tax was not deducted from a large number of employees.
From the information given you would appear to have a good case but what would your new employer think if you succeeded and the "approx 50 to 100" others were in the same situation, that's £20K to £40K+. I don't think you would be too popular.

Chupachups

I am composing this from work so do not have the exact figures, but I did pay approx £300 tax for that year, but total should of been around £700, hence the shortfall of £400. The company recently released a letter stating they were aware last year of an issue with p45 data, but neglected to tell us, and basically have referred us to hmrc to make payment.

Thrugelmir

The employer can only act of the information to hand. If the HMRC have subsequently received the data to recalculate all effected employees tax then that's that. As an employee you should have been chasing your own P45.

Ask the HMRC to spread the repayment over next years income.

zygurat789

Thrugelmir wrote: »

The employer can only act of the information to hand. If the HMRC have subsequently received the data to recalculate all effected employees tax then that's that. As an employee you should have been chasing your own P45.

Ask the HMRC to spread the repayment over next years income.

But the employer only changed in name this was a TUPE transfer. The employer issued the P45 with one hand and received it with the other, it would be a paper only exercise and they got it wrong and it would have been obvious.