Underpaid furlough

Traceyfen37

My old employer paid me £715.20 each month for 5 months but when I got my wage slips (after I left the company) they stated net pay £913.60. Now HMRC have informed me I have underpaid tax my old employer has stated I have earned more than I have received HMRC have informed my my old employer paid me 100% wage which is not the case ....so what happens now I refuse to pay tax on income I have not received 

Barny1979

Contact HMRC with evidence of payslips and bank statements to cross-reference income?

unholyangel

Get your employer to correct their mistake. 

Don't bother sending bank statements to HMRC as it doesn't prove (for example) that your employer didn't give you an advance, part pay in cash or a number of other scenarios. 

Jeremy535897

Log into your personal tax account and see what it says first. I don't understand why HMRC are coming to you, as if your employer had told HMRC you were being paid more than you received, he should have paid over more tax than you were due to pay, not less. If he deliberately used the wrong code, HMRC should look to him. It may be that he has misunderstood furlough and put the gross amount in rather than the furlough amount.

unholyangel

Jeremy535897 said:

Log into your personal tax account and see what it says first. I don't understand why HMRC are coming to you, as if your employer had told HMRC you were being paid more than you received, he should have paid over more tax than you were due to pay, not less. If he deliberately used the wrong code, HMRC should look to him. It may be that he has misunderstood furlough and put the gross amount in rather than the furlough amount.

Well tax isn't calculated on net pay. So we aren't working with the right info to start. Plus unless OP has a reduced code, no tax would be due on the standard code for either amount. So unlikely to be a tax or coding issue.

If OP says employer submitted wrong info (and they appear to, given op says their wage slip says the higher figure), it sounds like employer has submitted full pay amount instead of furlough amount. I believe some employers didn't know which figure to submit so erred with the larger of the two, lest they end up being limited to 80% of the 80%.

Which is why the employer needs to resubmit. 

Jeremy535897

I think OP must have a reduced code, or why would HMRC say tax is owed? I find the whole thing mysterious. I can understand the employer putting in the gross figure pre-furlough rather than the actual gross pay during furlough, but that should involve the employer handing over more tax (assuming a code less than 1250L), not less. Clearly though, the employer has got it wrong, and needs to correct the position.

unholyangel

Jeremy535897 said:

I think OP must have a reduced code, or why would HMRC say tax is owed? I find the whole thing mysterious. I can understand the employer putting in the gross figure pre-furlough rather than the actual gross pay during furlough, but that should involve the employer handing over more tax (assuming a code less than 1250L), not less. Clearly though, the employer has got it wrong, and needs to correct the position.

I was thinking perhaps there is more to the story/problem, as OP says old employer which (to me at least) implies there was a new employer. 

Plus presumably HMRC aren't asking via a p800 but rather a P2. So in year adjustment compared to underpayment.

But it still needs the right info to be sent to correct it. 

Jeremy535897

unholyangel said:

Jeremy535897 said:

I think OP must have a reduced code, or why would HMRC say tax is owed? I find the whole thing mysterious. I can understand the employer putting in the gross figure pre-furlough rather than the actual gross pay during furlough, but that should involve the employer handing over more tax (assuming a code less than 1250L), not less. Clearly though, the employer has got it wrong, and needs to correct the position.

I was thinking perhaps there is more to the story/problem, as OP says old employer which (to me at least) implies there was a new employer. 

Plus presumably HMRC aren't asking via a p800 but rather a P2. So in year adjustment compared to underpayment.

But it still needs the right info to be sent to correct it. 

Agreed.

poppy12345

My daughter's been on maternity leave for the past 10 months and claiming Maternity allowance up until November 2020. She had a letter from HMRC a few months ago saying she owed £100 tax and needed to pay it by end of this month (i think).

We were really puzzled with this, especially because she'd not earned any income since the new tax year began, other than the MA.

She checked her online tax account last month only to find that she now doesn't owe anything at all. She contacted them and they told her, it was an error, although they didn't actually contact her with any letter of apology.

Maybe yours is also an error so i'd definitely contact them to ask.

Traceyfen37

Jeremy535897 said:

Log into your personal tax account and see what it says first. I don't understand why HMRC are coming to you, as if your employer had told HMRC you were being paid more than you received, he should have paid over more tax than you were due to pay, not less. If he deliberately used the wrong code, HMRC should look to him. It may be that he has misunderstood furlough and put the gross amount in rather than the furlough amount.

Jeremy535897 said:

Log into your personal tax account and see what it says first. I don't understand why HMRC are coming to you, as if your employer had told HMRC you were being paid more than you received, he should have paid over more tax than you were due to pay, not less. If he deliberately used the wrong code, HMRC should look to him. It may be that he has misunderstood furlough and put the gross amount in rather than the furlough amount.

Hi my personal tax account says pay to date £850 less than the information he has sent to HMRC i was earning under the tax year amount at the time now im in full time employment my tax is being questioned so I rang hmrc who I formed me its figures from my old employer that don't add up there is 3 different amounts 
1  my wage slips 
2 my hmrc tax app
3 the p45 he sent to hmrc 
None of them add up to same amount all are different hmrc are taking the tax off me onto of my normal tax until it is figured out its such a mess 

Traceyfen37

Jeremy535897 said:

I think OP must have a reduced code, or why would HMRC say tax is owed? I find the whole thing mysterious. I can understand the employer putting in the gross figure pre-furlough rather than the actual gross pay during furlough, but that should involve the employer handing over more tax (assuming a code less than 1250L), not less. Clearly though, the employer has got it wrong, and needs to correct the position.

Hi I had a reduced marriage allowance code at the time I was earning under the tax amount its now that I earn more that my tax is in question hmrc have said its my old employment I apparently earned over £800 more than I received im confused as was on furlough at the time but I thought net pay ment what I received after deductions but them wages I received were £200 less in my bank