HMRC Underpaid Tax post Tax Rebate

I received a tax rebate from HMRC back in January/February as I was on the wrong tax code when I moved jobs the previous August 2022. I called them and the guy on the phone sorted it for me put me on a new tax code and said my rebate would be in my next wage.
I then got a letter this August 2023 from HMRC saying I had underpaid tax and when I phoned them the girl told me I was on the wrong tax code (which they put me on??) And I'm due them around £700 back!! 

Does anyone know if I am able to dispute this with HMRC as it is technically their fault?

Comments

  • eskbanker
    eskbanker Posts: 29,811
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    Tax codes are only ever based on best estimates of how much tax should be collected via PAYE, based on what's known at the time, and aren't a substitute for the actual tax liability calculations after the end of each tax year, so if the latter (with sight of everything applying to 2022/23) assesses you to have underpaid tax then there's nothing to dispute, other than perhaps a complaint about being given potentially misleading or contradictory information?

    Do you agree with the facts as stated in their recent assessment?  Did you have any non-employment income that may have contributed to an underpayment?
  • eskbanker said:
    Tax codes are only ever based on best estimates of how much tax should be collected via PAYE, based on what's known at the time, and aren't a substitute for the actual tax liability calculations after the end of each tax year, so if the latter (with sight of everything applying to 2022/23) assesses you to have underpaid tax then there's nothing to dispute, other than perhaps a complaint about being given potentially misleading or contradictory information?

    Do you agree with the facts as stated in their recent assessment?  Did you have any non-employment income that may have contributed to an underpayment?
    No, originally I was overpaying hence how I realised my code was wrong in the first place I don't have any extra income it appears they just had their figures wrong (I was sure it was correct tho) however it's now taken them 8 months to realise...
  • eskbanker
    eskbanker Posts: 29,811
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    ElevenKat said:
    eskbanker said:
    Tax codes are only ever based on best estimates of how much tax should be collected via PAYE, based on what's known at the time, and aren't a substitute for the actual tax liability calculations after the end of each tax year, so if the latter (with sight of everything applying to 2022/23) assesses you to have underpaid tax then there's nothing to dispute, other than perhaps a complaint about being given potentially misleading or contradictory information?

    Do you agree with the facts as stated in their recent assessment?  Did you have any non-employment income that may have contributed to an underpayment?
    No, originally I was overpaying hence how I realised my code was wrong in the first place I don't have any extra income it appears they just had their figures wrong (I was sure it was correct tho) however it's now taken them 8 months to realise...
    As above, any action taken during the tax year will only ever be a provisional attempt to arrange automatic payment via PAYE deductions, and it's only well after the end of the tax year that they have sight of sufficient confirmed data to calculate the definitive position about your tax liability.

    But, regardless of what they told you previously, are you disputing their current assessment, in terms of the factual accuracy of what they believe to be your total taxable income, your tax liability, and the amount of tax paid via PAYE over the year?
  • badmemory
    badmemory Posts: 7,503
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    Only 8 months.  Lucky you.  I will have to pay their error (because they had the correct figures I made sure of that) from 20-21.  Incompetent doesn't even come close.
  • I have a similar situation back in May, I phoned up for an explanation & they said its an error & reverted the under-estimate. Now I have a new tax code notice with the 'less adjustment' re-instated! All I want is an explanation of what this amount is  associated to. If its an error then I can tell from the answer. If not, is someone fraudulently using my details for some taxable return??
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