Tax coding / underpayment help

haggishopper

A friend of mine was told she owed £10,000 in tax and wrote to HMRC requesting that the case was passed to a Senior tax assistant and audited and if they could provide a detailed statement in full for each year. She had 6 years to prove
Then eventually they reduced the amount to £2500 and again she challenged them to prove the figures to her in writing and then it was all written off and she paid nothing.
So perhaps an error somewhere. In your case can I suggest that you request in writing that your case is re-asssessed by a senior tax assistant and details made available to you. You could also provide a written calculation for each year simply your income , perks and tax free allowance and the actual tax you paid - refer to your P60 and expense form and send it to them next day guaranteed delivery and ask to have it re-checked.
keep it simple and retain all proof of posting.

Silvertabby

When I retired and moved my personal allowance to my Armed Forces pension HMRC reckoned that I owed just over £2K and adjusted my code accordingly.

My tax affairs are extremely simple. I knew that my Armed Forces pension tax was spot on, but when I double checked my Local Authority salary, I made it that I had underpaid by just £2.24.

I spoke to a very nice lady at HMRC who didn't go so far as to say that 'someone had slipped the decimal point' but that was what she meant. All sorted !

Dazed_and_confused

dakotadveils

definitely underpayment that they have advised

When tax owed is included in tax codes there are two figures, the amount of the tax owed and a restriction/deduction amount by which your tax code needs to change to recoup the tax owed.

A simple example would be
Tax underpayment restriction £3000
Tax underpayment £600

For a basic rate payer reducing the tax code by £3000 would mean an extra £600 tax is collected (£3000 x 20% = £600)

For a higher rate payer reducing the tax code by £1500 would mean an extra £600 tax is collected (£1500 x 40% = £600)

Is the £2800 in your code the debt or the restriction?

dakotadveils

Hi everyone, I woudl just like to say a thank you to everyone for there help - its been very much appreciated.

The matter has finally been resolved today, I now have the correct tax code and a decent rebate coming.