Who is liable to pay underpaid tax?

chrisbur

Dazed_and_C0nfused said:

chrisbur said:

Dazed_and_C0nfused said:

But either way you have benefited from the nearly £2k tax refund that formed part of your March 2022 pay slip.  So you're not any worse off overall, just paying tax at a different time to when you should really have done.

Not ideal but you have effectively had an interest free loan from HMRC

There are two ways of looking at this....
An interest free loan is one way, accept that and pay up.
Another way is that an interest free loan is only be good if you know it is a loan and you will have to pay it back.
Not so good if you thought that it was a repayment of tax.  You knew that being on BR code meant that you were overpaying tax so expected some back.  You did not understand how PAYE works in that a tax code plus pay and tax details are needed so did not realise that just getting a tax code had not really sorted everything.  There was an error (HMRC or employer) but you did not know that until you got the tax bill.  Contacting HMRC to try and get this tax bill cancelled may well not succeed but then again it might who knows.


  

I guess it's possible but looking at the concession for this I don't see that being viable

https://www.litrg.org.uk/tax-guides/employment/what-if-i-do-not-pay-enough-tax/extra-statutory-concession-a19#toc-what-is-the-reasonable-belief-test-for-esc-a19-

https://www.litrg.org.uk/tax-guides/employment/what-if-i-do-not-pay-enough-tax/employer-or-pension-payer-error

I am thinking this is more likely to be an employer error and as I said might not succeed but they will never know unless they try.