HMRC claiming shortfall in tax paid although all liabity is PAYE only

GYFergus

I have two sources of income, basic state pension and private company pension. All my tax liabilities relate to these two incomes. HMRC has contacted me to advise that I owe £2000 unpaid tax for the year 2018/2019. I understood the state pension was offset directly against my tax code and HMRC then advised my resultant tax code to my Pension Scheme  Administrator, who then paid my pension after deducting the tax due. Given this is correct (?) then I cannot understand how I have run up such a (large) unpaid liability. I would welcome any guidance or help on this - HMRC and the Administrator have all my "income" details between them.

JGB1955

You have absolutely  no other income?  Savings, investments, rental income?  I don't think anyone will be able to help you without more information....

xylophone

Have you yourself worked out tax due for the year in question? https://www.which.co.uk/money/tax-calculator might help.
Have you looked at your personal tax account?
https://www.gov.uk/personal-tax-account
The standard personal allowance for 2018-19 was £11,850.   

GYFergus

That is correct, that is my only income, I have no dividends, interest etc., I have money in ISAs which I have not withdrawn, but understand that they do not attach a tax liability? It all "looks" simple and straight forward. I think there may have been a breakdown in communication between the HMRC and the Pensions Administrator, over coding allowances, but is that likely? And if it is do I have responsibility?
Thank you

xylophone

What was the amount of state pension for the year? What was the amount of occupational pension for the year? What was the tax code shown on your occupational pension advice for the year?
If you owe tax then you must pay it. It is up to you to check your tax code and that you have paid the correct amount of tax.

Dazed_and_C0nfused

GYFergus said:

That is correct, that is my only income, I have no dividends, interest etc., I have money in ISAs which I have not withdrawn, but understand that they do not attach a tax liability? It all "looks" simple and straight forward. I think there may have been a breakdown in communication between the HMRC and the Pensions Administrator, over coding allowances, but is that likely? And if it is do I have responsibility?
Thank you

It's not impossible and yes you have a responsibility to check your tax code and check your pension payer is using it.

But £2,000 tax owed does sound a lot given what you have posted so far.

What does your 2018:19 P60 show and have you checked the calculation letter for any obvious mistakes?

cloud_dog

I know this may be simplistic but...

OP, are you sure you owe tax of £2k or that your going to be taxed on £2k to recover under paid tax, i.e. £400?

Linton

DId anything special happen in 2018/19? eg was that when you stopped work and started one or both of your pensions? If so, depending on dates and amounts of income, it is possible to get into a situation where there is no opportunity for the full amount of tax due to be deducted in that tax year.