Income tax demand from HMRC - Employer's fault & won't help

L11Marc

Hello

Long story short. I worked for a pub in the summer of 2015 working part-time no more than 6 hours per week at £5 per hour (I was under 21) for 6 weeks exactly

I was paid cash in hand and received 1 wage slip only recently which stated I worked over 80 hours which is wrong

At the end of 2016 I received a letter from HMRC saying I owe over £700 due to my employer submitting I earned over £3000 while working for them at a tax rate of 20% even though I was with my current employer at the time the pub are stating I worked for them doing over 40 hours per week (no problems with current employer)

Ive been in dispute with my previous employer who used an accountant who the pub have fell out with so neither of them will get in touch with HMRC to tell them the declaration they made to HMRC of my earnings is wrong, their both putting the blame on eachother (even though on the phone the pub's landlords son) who was doing the payroll at the time I was there admitted it's his mistake but he's washing his hands of it and won't do anything else to help me

Im now getting final demand letters from HMRC saying it must be paid even though I have explained the situation but I guess its not their problem. And because my ex-employer is not out of pocket their not going out their way to help me. I really don't know what to do next, I don't want to pay HMRC because its incorrect my wages should of been tax free and I earned less than £200 while working for the pub never mind owing over £700 in tax...any advice would help please

xylophone

Telephone HMRC to get an address to which you can write disputing the payment.

dori2o

xylophone wrote: »

Telephone HMRC to get an address to which you can write disputing the payment.

The address can be found here

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

Make it clear in your letter that you are claiming employer error and fully explain the facts.

Do you have any written correspondence from the employer, even emails, if you do send copies of this also.

L11Marc

Only text message proof that I can provide but he has been to see me face to face to read my letters off HMRC and also told me on phonecalls but the only proof of him admitting it is text messages

dori2o

L11Marc wrote: »

Only text message proof that I can provide but he has been to see me face to face to read my letters off HMRC and also told me on phonecalls but the only proof of him admitting it is text messages

Print it out and include it.

Dazed_and_confused

Bit confused by what this means,

I don't want to pay HMRC because its incorrect my wages should of been tax free

Why should the wages have been tax free? Info in your original post coupled with the fact that you owe £700 on £3000+ suggests you had other income which used up your personal tax allowance so surely tax should be owed. Maybe only on £200 not £3000 but you would still owe something.

Cook_County

The cash you received was net of PAYE tax & NIC; so you would need to gross this up to figure out the taxable pay.

dori2o

Cook_County wrote: »

The cash you received was net of PAYE tax & NIC; so you would need to gross this up to figure out the taxable pay.

Not necessarily

At 6 hours per week and £5 per hour thats much less than both the tax allowance and national insurance lower earnings limit. Certainly no NI would be payable on £30 per week.

L11Marc

According to my figures my £10'600 free tax allowance was nearly taken up by my other employer but it left £120 'tax free' over as I only used £10'480 in my allowance as that's all I earned from other employers

Im typing up a letter to HMRC as we speak but my problem is will HMRC chase my previous employer for correct information or will they just say its my problem to prove it

My ex-employer claimed a while back he needs to download software to update my record to HMRC but now he's went funny with me because I won't leave him alone over this and rumour is he's been done for tax fraud before so im guessing by telling me the accountant messed up is his way of getting around it

He's basically told me it's nothing to do with him now, its out of his hands, he won't help me any further

So do I get a solicitor involved? but thats going to cost. Im just scared ill have to end up paying it due to HMRC demands

Dazed_and_confused

So you can calculate what you believe you do owe and send a payment for that amount with your letter to HMRC.

As for your ex employer you could point them in the direction of the info available on gov.uk on what to do "If you’ve reported the wrong pay or deductions". I think it's unlikely the amount HMRC say you owe will change unless your ex employer corrects the details they have previously sent to the HMRC

https://www.gov.uk/payroll-errors/correcting-your-fps-or-eps

Kim_13

According to this page, the minimum wage in 2015 was £5.30 (assuming the OP was between 18 and 20.) Presumably the employer will never submit a correct declaration as that would mean they admit to paying less than the minimum (which would mean sanctions.)

https://www.gov.uk/national-minimum-wage-rates