Paye tax error by employer

Megantaxwoes

Help:(

Having a nightmare with my tax. Got a p800 saying I owed over £2k for underpayment of tax last year. I got a new job and issued my p45 to my new employer. I was on emergency tax for 2 months and then got a rebate which I thought was odd but I must be owed for over paying.

So I have looked into the matter and hmrc blamed my employer and my employer blamed hmrc. This has gone on and on.

After pushing my employer for some advice or I'd put a complaint in, they said they add the tax from my previous employer onto my new employers wage slip. So when I look at my final pay slip for March 2015 it shows about £3500. However £1500 is from my old employer. Is this right? I'd added both taxes up but this is confusing.

Then I asked for the p60 figure they sent to hmrc and what my new employer did was enter my p45 details incorrectly. Rather than enter £12500 for earnings on p45, they entered it as £1250. So this is why I got a rebate.

Will I have to pay the underpayment as this is my employers error?

Thanks

jimmo

Almost certainly you will have to pay it back. We all make mistakes. Your employer made a mistake and the missing money ended up in your bank account.
If your bank had accidentally credited your account with £2,000 how long do you think you could keep the money once they discovered their error?
Why should things be different because your employer made the mistake in this instance?
HMRC do have powers to force employers to make good tax lost but they would only use those powers where there is clear evidence of deliberate wrongdoing or repeated “errors” after their mistakes had been pointed out to them.

xylophone

You might ask for an interest free loan from the employers as it was their mistake - they pay the bill and you can repay by monthly deduction from salary?