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

dori2o

L11Marc wrote: »

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 wrote: »

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

You must tell HMRC in your letter that you are claiming employer error. Without that you'll simply be told that YOU must discuss with your employer and have them send an Earlier Years Update.

By claiming employer error HMRC will be required to write to the employer and ask for an explanation.

Ensure that you put in your letter the dates you worked from/to. The amount you were paid per hour. The fact you never received payslips despite requesting them so you did not have the opportunity to check your tax code or that your rate of pay at least matched the NMW. The fact that you were paid cash rather than by bacs (this itself is not illegal, cash is still a valid method of payment, but not where it is used to avoid payment of statutory deductions)

Include the text message. Dont just write out the text message in your letter. Most phone manufacturers now have software you can download in order to update your phone, this software generally also offers you the ability to download/backup photos, music, text messages. You should also be able to print out the text from this software which will include other data such as date/time, phone numbers, metadata etc etc.

Calculate what you think you owe and show this (including your calculations) in your letter.

If you really want to stick the knife in, attach a 2nd letter and inform HMRC that you were paid less than the NMW, and ( ONLY if you believe it was the case) advise you were being paid in cash in order for the employer to avoid their statutory obligations.

Send the letter, but also phone HMRC (they are open today 9am - 5pm). Tell them again what the situation is. Tell them you have spoken to the employer who is refusing to deal with this because of THEIR own argument with THEIR accountants.

Advise the details you believe are correct and what you think you owe.

Ask that the underpayment is collected via your code over 3 years and ask if the adviser will consider an unequal split of the underpayment to recover what you believe is owed in year 1, then the remaining balance over the following 2 years. Advisers are not required to accept this type of split, but you may get through to an experienced adviser who will do it. Otherwise it will be split equally.

At worst you would be paying back 1/3 of the outstanding balance for the next 12 months.

What this does is it gives you a break from paying back the full amount whilst investigations continue, and when the truth is hopefully verified, then any necessary adjustments can be made.


This is not going to be a quick process. It all depends on how quickly your former employer takes to respond to HMRC's request for information.

Whilst they do this there is nothing stopping you from writing (send recorded delivery) to your former employer AND their accountants asking for details of pay/tax/NI, proof of payments made to you, including method of payment and hourly rate. Proof of hours worked and dates worked.

Once you have this, and assuming its wrong, you write again to tell them you disagree and request they put right the errors.

Keep the letters. They may come in useful at a later date.

Is the pub owned by the landlord or is it one belonging to a brewery/group or part of a chain. If its the latter write to the brewery/group/owners and tell them what has happened. Whilst they will most likely not be party to the issue at hand, the last thing they want is for this to become an issue which directly affects them. They might be able to offer some leverage on your behalf.

L11Marc

Thank you very much that's very helpful Ill do as you said

L11Marc

***UPDATE

So now HMRC have now been back in touch, now threatening fines on top of the original tax demand.

Spoke to both the landlord's son and the accountant. Long story short both still putting the blame on eachother. They still haven't got the codes/inputted them online to HMRC to confirm the hours worked

The accountant said he will be willing to write a letter to HMRC ''at a cost'' to me. My ex-employer is still saying the accountant has access to the info needed to update an early years thing to HMRC, the accountant is saying only the landlord has it.

HMRC dismissed my letter to them and said it needs to be paid no matter what even if im in dispute with them. I honestly don't know what to do next

calcotti

Does the letter say you have a right of appeal? You may want to read this https://www.gov.uk/tax-appeals