HMRC mistake

neil7462

An ex employee who left our business in Oct 2023 and went to work elsewhere has now been given a tax demand of nearly £4000 as they believe she still works for us and were not notified that she has left. I have a copy of her p45 that I produced in my payroll and it was clearly stated on the RTI that she has left. After further investigation by myself, the earnings that they are saying she received are exactly the same as another employee that still works for us!!

That employee is her mother with the same surname and address, but they have a different national insurance number.

She managed to speak to hmrc and they are going to investigate but didn't seem too bothered, only saying that it could take up to 20 weeks. At the moment she has a k tax code and is £400 short a month

Woodstok2000

Sounds like you've done your bit, now its up to her and hmrc

UKTaxHelper

Sounds more like a duplicate employment record sitting on her account than a real underpayment, which often happens when a payroll ID gets reused. Worth her pushing them to fix the current year code now rather than waiting on the investigation, thats a separate job and it stops the £400 a month going out in the meantime.

sheramber

https://forums.moneysavingexpert.com/discussion/6678234/hmrc-mistake

Have you confirmed that the RTI payment record for the mother has the correct NI on it?