Employer sent updated P11D in Nov

ollie2015

Hi, my employer has sent in a revised P11D on 7th Nov stating it was now £6,541 when in July the P11D sent to me had it as £5,814. HMRC have now reduced my tax code to be 413LX when it was 605L. As a consequence I am now having to make up payments going to back April 18 to make up the shortfall of £1,775. Does anyone know if I have a case to submit to my employer as their actions have led to me now having to pay back tax.

Pennywise

No, you aren't any worse off. You paid too little tax earlier in the year and you are now paying it off. If they'd got it right in the first place, you'd be in the same position.

ollie2015

surely though if my employer had got my P11D right in July then I would only have owed from Apr to July instead of April to November?

Dazed_and_confused

Pennywise is correct, you aren't any worse off overall it's just you are paying the tax later than you would otherwise have done.

Strictly you are actually better off as you have had use of the money and could in theory have banked it and earned some interest on it.

The same applies for the (likely) tax assessment you will receive for 2017:18 to collect the additional tax due on the increased benefit in kind figure (the tax code you are concerned about is just collecting the estimated tax you owe for this tax year, the P11D no doubt relates to the previous tax year).

nyermen

My employer just did the same thing. I wonder if its a bigger issue with tax code changes?
Unless OP's company name starts with "F", previously starting with "M" until being renamed last year, in which case, snap

To extend OP's question - i wonder if employer could be liable if you used an accountant for self service, who now has to reopen the books again at additional cost?

Pennywise

nyermen wrote: »

To extend OP's question - i wonder if employer could be liable if you used an accountant for self service, who now has to reopen the books again at additional cost?

Yes, if a mistake has caused you additional cost, i.e. additional accountancy fees, then yes, you have a case and may be able to claim the additional costs you suffered. That's not the case here though - there's no "loss". It's the same as if the employer has paid your wages late and you've incurred costs because of it, i.e. extra overdraft costs or late payment surcharges, the employer may be held liable. But in all these "hypothetical" cases, you have to have suffered a loss because of the employer mistake and you are also expected to mitigate that loss (i.e. do what you can to minimise the extra costs).