Former employer sent me an invoice for unpaid tax!

enajaluap

Hiya,

I have received information from a former employer that he has made a mistake in his payroll calculations and upon re-running his payroll for the tax year 15/16 it appears that I owe an additional £200+ in tax.

I left in October 2015 and received my P45 in November. I have 3 part-time jobs so I didn't really pay attention to the figures on my p45. However, looking at them now after I can see all of my earnings for the year, I think these figures sound about right. I have never quibbled the amount.

As soon as I was made aware of this (March 2016) I contacted HMRC to let them know and ask for their advice on how to resolve this.

Their advice was very clear... not to worry about it and if it turns out that I do owe this amount, my tax code would be adjusted to reflect the amount in the next tax year. Fine... that sounds fair and reasonable to me!

HOWEVER... my former employer was emailing me on a regular basis demanding that I made a payment to HIM so that he could sort his tax affairs out correctly. Every time he emailed, I phoned HMRC and was given the same advice... it will be deducted through my tax code in the next tax year. I always emailed my former employer back and told him that I would be following the advice I had received from HMRC and that I wouldn't be making any payments to him.

So... on Monday morning I woke up to an invoice from him for the outstanding amount and now he's saying that he intends to pay the outstanding amount on my behalf to HMRC (I have never asked him to do this) and as such, I was technically overpaid by the £200+ amount and that I'd better get independent advice before making a final decision about withholding payment.

What is he playing at here?

Guest101

Ignore it until you get a: a letter before action or b: court papers.


I'd also suggest you contact the previous employer and tell them that this is harassment and anymore contact will be reported to the police. (assuming you don't require a reference form them)


HMRC seem to have it spot on.

Takeaway_Addict

Ask HMRC to put their advice in writing to you so you have evidence if required further down the line.

duchy

How very odd
Is this a one man band rather than a small company ? (can't imagine any large company not knowing the basics like this)

enajaluap

I've actually already asked HMRC for their advice in writing and they've just said that it's not their job to do that!

I did contact citizens advice about it though and they gave me some information
https://www.citizensadvice.org.uk/tax/problems-with-tax/pay-as-you-earn-common-problems/#h-your-employer-or-hm-revenue-and-customs-makes-a-mistake

and I sent this link to my former employer. What he's actually saying though is that he is confident in the advice he's received from his accountants and Sage is to follow this advice from HMRC https://www.citizensadvice.org.uk/tax/problems-with-tax/pay-as-you-earn-common-problems/#h-your-employer-or-hm-revenue-and-customs-makes-a-mistake

I did say to him though that I couldn't see any reference in the guidance that he was to invoice a former employee!

Thankfully I escaped from this employer without needing to use him as a reference! He's a very manipulative man which I saw coming only a few months into my employment when he started changing the goalposts all the time. I don't need that in my life... luckily my skills are in demand and I only actually worked for him for 6 months in total.

I just wonder what he's playing at?! Why is it in his benefit to pay tax on my behalf? Is he trying not to disclose something to HMRC? Is there a chance he could be fined or something? Is this what he's trying to avoid?

Guest101

All irrelevant. Just tell him to foxtrot Oscar.

enajaluap

I'm not really concerned about the alleged outstanding tax any more tbh, I think the advice I have received and my actions have me covered should any more come of that but what I am concerned about is the fact that he's now invoicing me for "overpaid salary" which I think he can actually try to claim back off me?

Yes he's a one man band who says things like "I'll get my legal team onto that" but actually means "I'll get my mate, Dave, who happens to have a degree in law but now works in the local estate agents onto that" and "I'll get my accountant to look into that" but actually means I'll get my girlfriend who does my payroll for me and calls herself the Chief Financial Operator of my company to look into that" you know the type!!!

Guest101

enajaluap wrote: »

I'm not really concerned about the alleged outstanding tax any more tbh, I think the advice I have received and my actions have me covered should any more come of that but what I am concerned about is the fact that he's now invoicing me for "overpaid salary" which I think he can actually try to claim back off me?

Yes he's a one man band who says things like "I'll get my legal team onto that" but actually means "I'll get my mate, Dave, who happens to have a degree in law but now works in the local estate agents onto that" and "I'll get my accountant to look into that" but actually means I'll get my girlfriend who does my payroll for me and calls herself the Chief Financial Operator of my company to look into that" you know the type!!!

So just ignore him. Or tell him to stop calling you

bod1467

ONE response, in writing ... Thank you for your invoice. This debt is denied in its entirety, for reasons previously communicated on the advice of HMRC and Citizen's Advice. No further communications will be entered into unless it is:

a) A formal Letter Before Action compliant with the Practice Directions for Pre-Action Conduct of the Civil Procedure Rules, or
b) Actual court claim papers from the County Court.

Any other communications will not be responded to but will be filed as evidence in the event I require to make a claim against you for harassment. Please be on notice that any communication regarding this matter, by whatever means (letter, email, text, phone call), that is not either of the above will be considered as harassment.

enajaluap

So, I guess my question is... can he pursue the overpaid salary part? Even though it's technically underpaid tax due to his error?

I don't want to look like a donkey here by fighting it all the way, only to end up having to cough up before a court orders me to do so? The thought of having to pay any money to this man makes my skin crawl!

enajaluap

Thank you bod1476! Very helpful