Previous Employer over-stated tax

ClaireLH1978

Is there any kind of complaints procedure or Ombudsman that I can approach regarding a previous employer who is refusing to engage with me?

The situation is that when I joined my previous company they gave me a relocation bonus and a signing bonus. Both of these were sizeable and were taxed by HMRC. I lasted 3 months with the company and had to pay all of the bonuses back-to include what I had paid in tax, so I am out of pocket.

They sent last years P60 and my P45 to HMRC with final earnings which included all of the bonuses and was around £19,000 more than I actually finished with due to re-paying it all. I did the honourable thing I re=paid them as soon as they asked but now they are refusing to engage with me and send a correction of earnings through to HMRC so I can reclaim the tax but also I now work a small part time job but a whole shifts pay is going on tax but I am over the tax free allowance.

I have called HR/payroll, emailed pleaded but nothing, it is like I don't exist now I am an ex employee. I am so upset and feel like giving up my part time job as it doesn't feel worth doing.

greatkingrat

Do you normally complete a self assessment return? If so, just reduce your earnings to take into account the repayment and then any tax refund due will be dealt with as part of the self assessment calculation. You just need to make sure you keep copies of any letters, bank statements etc in order to prove the money was repaid, in case HMRC query why your figures are different from the P45.

ClaireLH1978

No I don't complete a self return-do you think I should switch and do it myself? That does sound easier than waiting for this machine of a corporation that I worked for to answer an ex employee like me. I have copies of everything, and the email from them promising the correction would be sent before August....

sheramber

Complain to HMRC

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/366615/employer-errors-deduction-paye.pdf

ClaireLH1978

@sheramber I have not seen that document before thank you. When I speak on the phone with HMRC they just tell me to contact previous employer and it goes round in circles.
They did however finally reply to me email dated 17 August yesterday and said they will send a correction to HMRC first week of September.....although I was promised the same last month... We will see. If it wasn't for not wanting to seem like a trouble maker to my new employer I would name and shame this company on LinkedIn to try and force a response

sheramber

When you call you speak to the employee section.

The above complaint goes to the employers section.  They are two separate  departments., dealt with by different people

nick74

Just to clarify, are you saying that you repaid the money to your employer gross, when they had presumably deducted tax and NI from it when originally paying it to you? If so, getting your PAYE record corrected only solves part of the problem. Your former employer also needs to give you the tax and NI back. 

ClaireLH1978

Yes I repaid gross, and they said they would send the correction to HMRC so I was under the impression HMRC would send me a P800 and refund me.....no?....what a mess:-(

nick74

ClaireLH1978 said:

Yes I repaid gross, and they said they would send the correction to HMRC so I was under the impression HMRC would send me a P800 and refund me.....no?....what a mess:-(

No, you received the money net of tax and NI so really you should have repaid the money net just as you received it, and your former employer should then correct their previous payroll RTI submission. That step would get them the overpaid tax and NI back from HMRC.

This really needs to be corrected by your former employer. Even if you submitted a tax return showing you had overpaid income tax that doesn't get you the overpaid National Insurance back. It is in the employer's interest to get it right because they will have overpaid employers National Insurance too.

I think in your situation I would write a letter to the former employer sent by recorded delivery, giving them a deadline to repay the overpaid tax and NI to you. How/when they deal with it with HMRC is up to them.

sheramber

they paid you X and sent Y to HMRC for tax and NIC  - so they are down X+Y

You paid back  X+Y, so their books are square and you are  out of pocket by Y

They have no incentive to amend anything as they have their money back. 

You never received the Y amount so should not have paid that to them. You were only due to repay X , the amount you received, and they needed to sort out Y with HMRC.

ClaireLH1978

It is like talking to a brick wall when I call the 'employee help line' there is a language barrier and they keep promising to get somebody from UK payroll to call me back which never happens. They are too busy, they have their bonuses back and don't give a hoot about the fact that they added an extra £8000 to this years earnings on my P45 and the extra £11,500 onto last years P60. 
I will give them until Monday then I am making a formal complaint, as you suggest in writing, to them/HMRC and a friend suggested ACAS.

Thank you for your guidance everybody