P60 question

JennyP

I just had a letter from HMRC saying that there was an error on my 2012/13 return which they have picked up on.
I have a mix of income, some of which is PAYE, some of which isn't, so I do a tax return.
They are saying that my figure from my PAYE and the figure they got from my employer, are diffferent by £8K and that I owe almost a grand.
I checked my P60 and it's got the same figures that I put on my tax return. I also checked the last payslip for that year and it's the same figure on the bit where it shows your total earnings for the year.
I did two contracts that year with the same employer but thought that an employer issued one P60 showing total earnings for that tax year, with both amounts of earnings added together. I didn't think you got a P60 per contract. HMRC are saying that they have two P60s from that employer and that they added the amounts togehter.
I rang my employer and asked and they only have one.
I also checked online - you can log into a website for that employer and it has all your old P60s and some payslips (though payslips don't go back that far) and there is only one P60 for that year.
I am awaiting copies of my bank statement for that whole year from my bank to check my earnings.
HMRC have agreed not to charge me a penalty if I do owe this money as they accept it's a genuine mistake.
But I'm just confused as to how it could happen - is it one P60 from one employer or could there be two from the same employer for the same tax year?
Also, I really object to paying nearly £60 in interest when if I do owe this money, it's not really my fault? Can I appeal that?

Darksparkle

There could be two depending on circumstances.

Eg you work for an employer and leave mid year. They give you a P45.

For easiness, we'll just say you had no employer in between.

You go back a month later (within the same tax year). You should give them a copy of the P45.

Your P60 should then show the previous employment income and current employment income.

If you don't give the P45 in then the P60 would only show the current income.

JennyP

I doubt I gave them the P45 so that explains how there could be two P60s.
Doesn't explain why only one is showing on the website and why my employers says that they only have one whilst HMRC reckon they have two.
I reckon an error has been made and I do owe them the money but I would like to see both P60s and see some proof before I pay up!

Dazed_and_confused

As darksparkle has said you won't have 2 P60s, you will have a P45 for the first bit if employment and a P60 for the second (assuming you were still in employment at the end of the tax year).
If you didn't hand in the P45 when you started work again the P60 won't make any mention of the first bit of employment.
You really need to find your P45 and P60 and compare the wages (and any tax the company deducted) with what you entered on your tax form. Sounds very much like you have missed off the first period of employment so you will have a tax bill and interest to pay for that. Possibly penalties as well as it seems a bit careless to miss off £8000:eek:
I'm not really sure why you think it isn't your fault, the tax form is for all your income for the year, not just the bits you remember about.

JennyP

Dazed_and_confused wrote: »

Possibly penalties as well as it seems a bit careless to miss off £8000:eek:

That was a really useful explanation - thank you. Shame you had to spoil it by being judgmental.

Dazed_and_confused

JennyP wrote: »

That was a really useful explanation - thank you. Shame you had to spoil it by being judgmental.

Sorry, wasn't meant.to be judgemental just being honest. I guess interest is being charged because you've had the benefit of the tax money in the time it should have been paid to now. Maybe this is what's called a life lesson??

JennyP

Dazed_and_confused wrote: »

Sorry, wasn't meant.to be judgemental just being honest. I guess interest is being charged because you've had the benefit of the tax money in the time it should have been paid to now. Maybe this is what's called a life lesson??

Definitely. I genuinely thought I just got my P60 for each employer and that was it, until you replied. Why couldn't HMRC explain that yesterday? Going to go through my paperwork again now for that year and see if there's a P45 that would make HMRC's figures stack up. Fortunately I think in subsequent tax years, I didn't have a break in contract and I now have a permanent job instead of relying on short-term contracts, so this mistake hopefully won't come up again.

Darksparkle

JennyP wrote: »

Definitely. I genuinely thought I just got my P60 for each employer and that was it, until you replied. Why couldn't HMRC explain that yesterday? Going to go through my paperwork again now for that year and see if there's a P45 that would make HMRC's figures stack up. Fortunately I think in subsequent tax years, I didn't have a break in contract and I now have a permanent job instead of relying on short-term contracts, so this mistake hopefully won't come up again.

HMRC don't actually receive P60s. Previously they received P14s which were pretty much identical but now use RTI which is where an employer reports the pay and tax details at each pay period rather than at the end of the year. This will where they get their data from.