Tax underpayment help please

jewelly

I've just received a P800 showing a tax underpayment for 2014-2015 of £331.20.

I was employed, but on long term sick leave so claimed ESA when my SSP ended.

The income figures for my employment and ESA payments are correct on the notice. It appears that ESA did not deduct tax from my total payments of £1646.

Do I have to pay this underpayment? I assumed at the time that ESA would have deducted any tax due at source.

When I returned to work and stopped claiming ESA I had a letter & P45 from Jobcentreplus. In the letter it states that "ESA can count as taxable income ...... this is added to any earnings for this tax year". And later it says "we have checked your tax position but no refund is due". Should I have forwarded the P45 to my employers even though it states that it is for giving to a new employer.

I'm not clear whose responsibility it was to ensure the right tax was paid at the time. Mine I suppose - even though it wasn't clear what I was supposed to do in the circumstances.

Any advice appreciated. Thanks.

molerat

Benefits are not taxed at source so you do have to pay the tax due. Not sure whether you should have handed the P45 to your continuing employer, you should probably have contacted HMRC to discuss it at the time. You are liable for ensuring your tax affairs are in order.

polymaff

jewelly wrote: »

1. underpayment for 2014-2015 of £331.20. ... It appears that ESA did not deduct tax from my total payments of £1646.

2. ...I'm not clear whose responsibility it was to ensure the right tax was paid

1. £1656 at basic rate is £331.20, so it looks like it

2. You - always you.

CLAPTON

maybe if you post up the full figures and the relevant dates for the year 2014-15 we could check that the assessment is correct

jewelly

The figures are all correct. I guess I've learned something. Hopefully, I won't have long term sick leave again.

Thanks all.