P60 error - Employer acknowledged but failed to rectify mistake

Pedders81

Hi,

I've hit a brick wall with regard to an error on my P60.

For the last tax year (2015-2016), I commenced employment in September 2015 and hadn't previously worked in the tax year due to being in full time education.

My now previous employer (umbrella company) incorrectly added earnings from August 2014 (£2000) to my 2015-2016 P60, with this showing as earnings in previous employment.

Due to the error and in addition to the umbrella company putting me on an emergency tax code for the remainder of the financial year, I have overpaid tax by £1000.

I've contacted the employer and have evidenced my communications with them. They have acknowledged the mistake (adding August 2014 earnings to my 2015-2016 P60) and stated they would send a file to HMRC and send me a letter confirming my correct earnings and tax paid.

Fast forward 3 months:

I haven't received any postal correspondence from the employer despite them saying they've sent it twice.
I've spoken to HMRC and they've said they haven't received anything from the employer despite the employer saying they've sent them the corrected details.
Then last week I received an e-mail from the employer enclosing my statement of earnings and to my utter shock they've sent me the same P60 which includes the incorrect figures.
I've contacted them again and asked them to log a complaint but unlike all of my other communications, they haven't acknowledged my latest e-mail.

As things stand:

HMRC won't get involved as the employer is at fault and adding further insult, they won't issue my £1000 refund until they receive the correct details from the employer.

Where do I stand with this? especially after the employer has admitted liability but has so far failed to rectify the situation and are taking 2-3 weeks to respond to every query I raise.

Is my only option pointing towards taking them to court?

Dazed_and_confused

Mountain out of molehill springs to mind.

Why didn't you fill in the new starter checklist correctly when you started with the umbrella company?

Does it really matter to you if this is on your P60?

HMRC are only interested (for 2015:16) in what you have earned with the umbrella company and as employers no longer send HMRC copies of your P60 how do HMRC even know about it?

Surely HMRC will work out your tax based on the "this employment" amount on your P60 so if this is correct all should be well.

Worst case scenario short term is they work out your tax with the extra £2000 and, assuming you are a basic rate payer, you get £400 less of a refund but is £600 refund now and £400 later not better than £1000 who knows when?

Pedders81

How is it a mountain out of a mole hill? As it stands HMRC won't issue any form of refund.

I did fill in the new starter pack correctly and the employer have confirmed this but admitted they've made an administrative error.

The previous employment figure is showing as earned in the 2015-2016 tax year.

HMRC know about it because they sent me an offer of a refund which included a calculation that was based on my earnings with the umbrella company and the £2000 from previous employment. They've now suspended the offer of a refund until the employer rectifies their mistake.

xylophone

OP - try PM to chrisbur who is helpful regarding tax matters.

https://forums.moneysavingexpert.com/discussion/5525626

post 5

Dazed_and_confused

Never heard of HMRC making an "offer" of a refund before, thought they either issued a refund or they didnt??

If the new starter declaration was correctly completed stating the umbrella job was the first one in the tax year then you would have the correct tax code and no tax would have been overpaid. How did this company know about the £2000, maybe you gave them an out if date P45 - why would you do that?

At the end of the day you could have seen from your payslips if something was wrong and sorted it out with the umbrella company at the time and then there'd be no refund issue as it would have been resolved during the year

Pedders81

HMRC now send out letters inviting you to reclaim overpaid tax online.

I've worked for the same umbrella company on 3 separate occasions. The time prior to Sept 2015 was August 2014.

I was put on an emergency tax code and told they couldn't rectify this until the following tax year. I told them about the wrong tax code and the incorrect gross income and they failed to rectify it on both occasions.

Dazed_and_confused

Yes, there's been a massive thread about this on hukd and if it's got to that stage it's because hmrc have worked out your tax for last year and sent a calculation to you in the post - all the new service does is then allow you to have the money transferred direct into your bank account.

You seem to be saying your employer ignored your starter declaration and is basically a rubbish employer (payroll wise at least).

If your employer wasn't playing ball I don't understand why you didn't just get hmrc to issue the correct code - the emergency code is exactly the same code number as the standard code most people have, it's just used on a special basis ignoring the previous part of the year and it would have been a five minute call to hmrc to ask them to issue it on a cumulative basis and avoided all this hassle.

Still not sure quite how hmrc have got to know about the £2000 from your P60, can only think you have supplied this for some reason but why you would have done this is beyond me

sheramber

As the OP worked for the same company until August 14 and then recommenced September 15 it would appear the payroll people got the years confused and treated it as continuing income and incorrectly added the 2015 income onto the 2014 income.

Pedders81

Yep, that's exactly what they've done... added August 2014 on to September 2015.

I've sent a detailed letter including evidence to HMRC 5 weeks ago but they're yet to look at it. Resolution date is 30 November.

I've also sent a complaint to the umbrella company at the same time but they haven't acknowledged the letter never mind responded. Both letters (HMRC and Giant Management were sent via Special Delivery). What makes a mockery of things is that Giant have been voted the best UK payroll company of the year for the last 6 years.

I've had enough of Giant's incompetence and they will be receiving an e-mail on Monday advising that I'm taking them to court.

Pedders81

My employer have intervened and will attempt to resolve the issue with the third party. If not, my solicitor will be pursuing Giant for breach of s67 of the Income Tax (pay as you earn) Regulations 2003.

Farcasting

Pedders81 wrote: »

My employer have intervened and will attempt to resolve the issue with the third party. If not, my solicitor will be pursuing Giant for breach of s67 of the Income Tax (pay as you earn) Regulations 2003.

i think your employer or payroll is just being a pain on purpose.

they have to literally go into the software and submit an Earlier year adjustment (EYU) it takes about 20 seconds.

hope u get this sorted.