Tax code change - HMRC/Old employer error

Chally3

Good Morning all,

I'm looking for some advice please, having just been advised on a change in my tax code by my current employer (heard nothing from HMRC).

Upon investigating with HMRC they have stated there has been underpayments & overpayments since 2016 and that I now owe them money.

HMRC have confirmed they should have adjusted my tax code to collect the arrears from 2018 - but they have not. (since then my tax code has been what's expected) 

They claim this relates to incorrect and updated info received from a prior employer, I would just like to know where I stand on this as this was their error.

This is the situation and it's not a huge amount of money, but enough!

2016/2017    £561.73 underpayment

2017/2018    £256 underpayment, yet I also received a tax refund of £1473

2018/2019    £282 income tax overpayment

2019/2020   £292 income tax overpayment

2020/2021   £208 income tax overpayment

2021/2022   not yet calculated

This leaves a net of £1522 HMRC are chasing to pay back this year

Thank you kindly, any help very much appreciated. 

sheramber

They claim this relates to incorrect and updated info received from a prior employer, 

When did they get that information?

You can't expect them to make an adjustments for information they do not have.

Chally3

Hi, they had the information in 2018 I was told , but have not adjusted my tax code since .

thank you 

Chally3

anyone help please.

biscan25

Unfortunately, if you owe HMRC tax, then ultimately it is your responsibility to pay it, regardless of how it occurred. 

They are quite accommodating with collecting underpaid tax through adjustment of your tax code, meaning you pay off the arrears over the next year.

chrisbur

You could have a look here, I have no experience of this so have no idea if it would be successful.... 

https://www.litrg.org.uk/tax-guides/employment/what-if-i-do-not-pay-enough-tax/extra-statutory-concession-a19