Income Tax HMRC Time Limits

Qwark

If my employer doesn't deduct the correct tax from my wages, are there time limits under which the HMRC can no longer chase them or penalise them?

xylophone

You are aware that you are being either over or undertaxed?

Why have you not contacted HMRC to regularise the situation?

Qwark

Do you have any response to my original question please?

Wayne_O_Mac

The parts you have quoted primarily refer to self-assessment returns, not PAYE deductions, so it looks like you've got a bit more reading to do.

Qwark

Do you know for a fact that there are different time limits for PAYE? Can you recommend any reading on the subject? Unfortunately I''m unable to go into my particular situation due to privacy.

agrinnall

Qwark wrote: »

Unfortunately I''m unable to go into my particular situation due to privacy.

How can there be any privacy issue when nobody on here knows who you are or who you work for? Ir's a nonsense excuse used by people who simply can't be bothered to provide the information that would help people to help them.

isasmurf

agrinnall wrote: »

How can there be any privacy issue when nobody on here knows who you are or who you work for? Ir's a nonsense excuse used by people who simply can't be bothered to provide the information that would help people to help them.

That's harsh. There are people who, quite rightly, don't want to post their financial details on a public forum. That is their right and they shouldn't be judged for it. While the Op's identity won't be known to 99.9% of people here, there is always the chance of someone knowing them or being able to identify them. Further, it's very easy for a determined intruder to piece information together from various sources, known as jigsawing, to build up enough information to identify the individual.

chrismac1

I can reveal that Qwark is head of IT services for BA, which explains the need for privacy I hope. I got this info. from the FBI so it may be a bit dodgy.

Qwark

isasmurf wrote: »

That's harsh. There are people who, quite rightly, don't want to post their financial details on a public forum. That is their right and they shouldn't be judged for it. While the Op's identity won't be known to 99.9% of people here, there is always the chance of someone knowing them or being able to identify them. Further, it's very easy for a determined intruder to piece information together from various sources, known as jigsawing, to build up enough information to identify the individual.

Thank you.

My question did not require me to post up details about my own private financial circumstances that might be recognised by other parties.

The forum rules clearly state that posters must be careful what they post. They can not only get themselves into trouble but they can also get the board owners into trouble.

Qwark

00ec25 wrote: »

irrelevant in the context of what you are asking about.
As you won't explain your circumstance, it is not possible to say if the 4 year limit can be claimed because there are situations where the time limit is 20 years (or even unlimited if HMRC so choose)

I have not asked if the 4 year time limit applied to my circumstances.

I have not referred to my own circumstances at all.

I have asked a simple question regarding the general time limits in relation to paye income tax.

I have already received the help I require on another board without all this unnecessary speculation.

Thanks anyway.

dori2o

The limit is generally 4 years, however, as already discussed HMRC can in certain circumstances go back as far as required, especially in cases where HMRC suspect systematic/severe fraud.

In general terms HMRC should use information they hold within 12 months of the end of the tax year in which they receive the information, and in this digital age where each and every paye payment you receive is received electronically that means 99% of paye only cases are automatically reviewed at the end of the tax year, so if you've not paid the right amount of tax it's highly likely that you wil be sent a tax calculation and told to pay it back.

The difference now is that unlike in the past where PAYE calculations were informal and HMRC could only ask you to volunteer to pay any underpayment, PAYE calculations are now fully and lawfully chargeable and HMRC have full collection powers without having to transfer the year into self assessment to make them recoverable.

There is one further consideration and that it the belief test. I.e. the belief that the individual concerned knows that the correct tax was not being collected in the tax year. Based on your first post you would clearly fail this test if you challenged HMRC, therefore they have 4 years to identify this possible underpayment.

Lets not forget that HMRC are merely the collectors of tax, the responsibility to pay the right amount of tax lies with each individual. So if you know you are underpaying you have a legal responsibility to take necessary steps to correct this.