Underpaid Tax (due to 'estimated job expenses'?)

Pufferfish

Hi

My partner has recently received notification of underpaid tax going back over 4 years. When we looked into it, it appears that they've been allowing for 'estimated job expenses' of £2000 each year over this period, none of which he has ever claimed or knows anything about as he has very minimal expenses and it's all paid during the year, usually as cash because it's a small amount.

For the last 2 tax years (including current tax year), these 'estimated expenses' seem to have been included in his tax code giving him a tax code of 1450L and subsequently 1457L (as opposed to the correct 1250L and 1257L). Recently, he claimed for uniform tax rebate and this seems to have prompted HMRC to recognise that he shouldn't be receiving the higher personal allowance, hence him now owing them. For the years prior to this, his tax code appears to have been correct, but he still apparently underpaid (presumably based on this expenses thing). Needless to say, we're confused!

It's a lot of money to suddenly owe back due to someone else's mistake and has come as a bit of a shock because he had no idea anything was amiss - does anyone have any idea why HMRC would have adjusted his tax code to include 'estimated job expenses' in the first place? Is it likely they've acted on misinformation provided by his employer? Obviously it would be good to understand how this could have happened.

Many thanks for your help.

Dazed_and_C0nfused

Unlikely to be from an employer.

Has he ever completed Self Assessment returns or used a tax reclaim company?

Pufferfish

No, neither of those