Unfair HMRC Treatment?

aljsimons

Hi, first time post, hope this hasn't been covered elsewhere already.

TL;DR
Having completed my tax return for the 15-16 tax year, I've just found out I owe over £500 in tax. HMRC failed to notify me of my incorrect tax code resulting in me not knowing to correct it and ending up underpaying.

Detailed History
In the 14-15 tax year I claimed for mileage where my employer paid me less than 45p per mile. I left that job before the end of March 2015 so would not need to claim mileage expenses in 15-16. Despite ticking a box on my tax return which I (wrongly) thought meant no such expense claim should be assumed for the next year, HMRC changed my tax code, assuming I would be claiming the same mileage expenses in 15-16. As a result, this wrong tax code (1368L) applied for 6 months without me realising, hence me underpaying tax.

My complaint is that I was not notified my tax code had changed. On two occasions (Jan 15 and May 15), HMRC notified my employer of my changed 15-16 tax code, but not me (they have confirmed they told only my employer and not me). In Aug 15 I was notified of the tax code, at which point I called HMRC and corrected it back to 1060L. I did not received any paper pay slips from my employer as these were all held on line, so I never saw the tax code was wrong.

Here's My Question
It is clear I have not paid enough tax. My question for MSE forum members is this: do I have a valid claim that HMRC did not treat me fairly by not telling me my tax code had changed?

If the concensus is either HMRC did no wrong or are unlikely to change their mind, I'll just pay, but I figured you guys would be well placed to guide me

Thanks in advance...

TheCyclingProgrammer

I don't know if they are required to notify you of every tax code change, but didn't you notice the wrong tax code on your payslip?

I don't think you'll have any good reason not to pay what you owe I'm afraid.

Pennywise

No, HMRC have done nothing wrong and you do owe the money.

Your tax code would have been shown on your payslip - you should have seen it was wrong according to your changed circumstances. HMRC have no way of knowing whether or not you'd be claiming mileage again - it's up to you to keep them informed when things change.

Savvy_Sue

aljsimons wrote: »

I did not received any paper pay slips from my employer as these were all held on line, so I never saw the tax code was wrong.

Just because your payslips are held online doesn't mean you shouldn't check them. Unless your employer is not allowing you access to them, the information held on them is just what would be printed. (Sidenote: every month I email my colleagues and tell them exactly how to access their payslip, which is held online, and I can guarantee that several of them rarely do so.)

Have HMRC explained why they did NOT send you a P800 when they changed your tax code? And have they agreed to send one in future?

aljsimons

OK, thought as much - I guess my argument that payslips aren't sent through the post anymore won't help me either.

Is it really the case HMRC can change my code, not inform me, but expect me to tell them if it's wrong? Seems a bit unfair... Does anyone know if the FCA financial fairness rules apply to HMRC?

aljsimons

PS Thanks all for your swift replies

aljsimons

HMRC didn't explain why they sent no P800, but it sounds like a moot point now anyway. Lesson learnt - check payslips... thanks

p00hsticks

aljsimons wrote: »

As a result, this wrong tax code (1368L) applied for 6 months without me realising, hence me underpaying tax.

aljsimons wrote: »

In Aug 15 I was notified of the tax code, at which point I called HMRC and corrected it back to 1060L.

If your tax code was changed halfway through the year, then I would have thought that the amount taken should have corrected itself over the subsequent six months once your employer had the right code ?

Darksparkle

p00hsticks wrote: »

If your tax code was changed halfway through the year, then I would have thought that the amount taken should have corrected itself over the subsequent six months once your employer had the right code ?

Unless it was non cumulative so W1/M1/X at the end.

Wayne_O_Mac

aljsimons wrote: »

HMRC didn't explain why they sent no P800, but it sounds like a moot point now anyway. Lesson learnt - check payslips... thanks

If you're completing a tax return, they won't issue a P800.

badmemory

Surely a notification of a change of tax code to the "customer" (like we have a choice) should be mandatory. Regardless of the reason for that change.