📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax Bill from 2017/18 received

Options
jhe
jhe Posts: 1,826 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
Looking for advice on a tax bill received  please
reached retirement age and pension paid from early 2017 but still worked in paid employment and paid my tax on my wages every week.
in 2021 received a tax bill for over £500 for tax year 2017/18.
phoned HMRC immediately about it, after a lengthy phone call I was told actually they owe me and refunded over £700 to me
fast forward last week I received a tax bill for 2017/18 for over £500.
after another phone call to HMRC I was informed the refund given to me in 2021 was for another tax year and I still owe the outstanding amount from 2017/18
i am now retired this is a huge amount for me to pay, 
from the time I claimed my pension and carried on working, every year I owed tax at the end of each tax year, my tax code was always adjusted to cover what was owed from the previous tax year .
is this normal to receive a bill from so far back ?

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,659 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 3 March 2024 at 4:51PM
    jhe said:
    Looking for advice on a tax bill received  please
    reached retirement age and pension paid from early 2017 but still worked in paid employment and paid my tax on my wages every week.
    in 2021 received a tax bill for over £500 for tax year 2017/18.
    phoned HMRC immediately about it, after a lengthy phone call I was told actually they owe me and refunded over £700 to me
    fast forward last week I received a tax bill for 2017/18 for over £500.
    after another phone call to HMRC I was informed the refund given to me in 2021 was for another tax year and I still owe the outstanding amount from 2017/18
    i am now retired this is a huge amount for me to pay, 
    from the time I claimed my pension and carried on working, every year I owed tax at the end of each tax year, my tax code was always adjusted to cover what was owed from the previous tax year .
    is this normal to receive a bill from so far back ?
    No but it's not impossible.

    Have you got the calculation showing how the £500 was arrived at?
  • jhe
    jhe Posts: 1,826 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    jhe said:
    Looking for advice on a tax bill received  please
    reached retirement age and pension paid from early 2017 but still worked in paid employment and paid my tax on my wages every week.
    in 2021 received a tax bill for over £500 for tax year 2017/18.
    phoned HMRC immediately about it, after a lengthy phone call I was told actually they owe me and refunded over £700 to me
    fast forward last week I received a tax bill for 2017/18 for over £500.
    after another phone call to HMRC I was informed the refund given to me in 2021 was for another tax year and I still owe the outstanding amount from 2017/18
    i am now retired this is a huge amount for me to pay, 
    from the time I claimed my pension and carried on working, every year I owed tax at the end of each tax year, my tax code was always adjusted to cover what was owed from the previous tax year .
    is this normal to receive a bill from so far back ?
    No but it's not impossible.

    Have you got the calculation showing how the £500 was arrived at?
    Thanks
    I asked for an explanation -HMRC said 
    an underpayment occured as a result of actual gross income being higher than estimated gross income that was included in my tax code.
    Its frustrating  I thought it was sorted back in 2021 when they refunded me
    I am guessing the refund  is for 2020/21 it is the only tax year they did not discuss during my phone call to them a few days ago, but that was not explained to me back in 2021 when I phoned about the original bill that is over £500
  • Brie
    Brie Posts: 14,805 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You should be able to agree a repayment plan with them if they have agreed that this is, in part at least, their error.  So they could change your tax code for 2024/5 and that would allow you to pay it off over the coming tax year.  
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards.  If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board:  https://lemonfool.co.uk/financecalculators/soa.php

    Check your state pension on: Check your State Pension forecast - GOV.UK

    "Never retract, never explain, never apologise; get things done and let them howl.”  Nellie McClung
    ⭐️🏅😇
  • Brie said:
    You should be able to agree a repayment plan with them if they have agreed that this is, in part at least, their error.  So they could change your tax code for 2024/5 and that would allow you to pay it off over the coming tax year.  

    That definitely won't be possible now.  But arranging to pay it off bit by bit should be possible.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.