Underpaid tax

jem16

katies_mum wrote: »

Thank you, am I right in thinking he will have to write to them? should he just give the figures he has given above?

I also assumed that as his income was less than the allowance then nothing is owing

Sorry I added on a bit whilst you were replying? Can you take a look at it now and reply again?

katies_mum

Sorry, I`m not really understanding what you mean?

jem16

katies_mum wrote: »

Sorry, I`m not really understanding what you mean?

Forget what I said earlier as I have just noticed the net pay part which I missed earlier.

Your husband's basic pay was £971.55 but he actually received £1042.28. This is because he received a tax refund of £109.80 in his March payslip which is correct as he should not have paid any tax for 2013/14 and had paid it back in April 2013.

However HMRC's calculation does not include tax paid of £109.80 and it should because it was paid and then refunded.

So yes get your husband to write to HMRC.

katies_mum

Thank you very much, will do.

katies_mum

Please does this sound ok... to HMRC...not really sure how to word it?

With reference to your letter of 25th June 2014, enclosing tax calculation for the tax year 2013-2014 and informing me I have underpaid tax of £109.80, I note that your calculation does not include tax paid of £109.80 (please see attached).

The refund of £109.80 paid in March 2014 was in respect of this amount paid in April 2013. Based on this there should be no underpayment of tax due.

I look forward to hearing from you.

Savvy_Sue

katies_mum wrote: »

He also received Navy Pension £7044 gross 2013-14
And did a one off casual job £377 gross April/May 2013

I'm not going to attempt sums, but does this Navy Pension and the tax code of 497L not make a difference to what might or might not be due?

To my way of thinking, gross income for the year is over the personal allowance.

katies_mum

His tax code is split so he gets all navy pension paid gross and the rest is allocated to wages (the 497L was HMRC messing it up and trying to allocate half and half...it was adjusted back again) if that makes sense.

He has the full tax allowance but its split so he gets all navy pension gross and the rest is allocated to wages. The total of all his income is less than his allowance.

jem16

katies_mum wrote: »

Please does this sound ok... to HMRC...not really sure how to word it?

With reference to your letter of 25th June 2014, enclosing tax calculation for the tax year 2013-2014 and informing me I have underpaid tax of £109.80, I note that your calculation does not include tax paid of £109.80 (please see attached).

The refund of £109.80 paid in March 2014 was in respect of this amount paid in April 2013. Based on this there should be no underpayment of tax due.

I look forward to hearing from you.

Sounds fine. You may have to attach the P60 as proof - make sure you photocopy it first through. The P60 clearly shows that £109.80 tax was paid and then refunded.

jem16

Savvy_Sue wrote: »

I'm not going to attempt sums, but does this Navy Pension and the tax code of 497L not make a difference to what might or might not be due?

To my way of thinking, gross income for the year is over the personal allowance.

The HMRC calculation takes the Navy pension, the £377 casual job and the employment income into account as that all adds up to £9357. Therefore the full personal allowance should be used (as HMRC always does in tax calculations) and total income is below this.

The PAYE code is only a method of collecting tax and the full personal allowance is always used in tax calculations by HMRC.

katies_mum

Thank you for your help, its very much appreciated