taxman

aelengland

Hi, my partner has been on tax free status for the last five months, and we have just found out that the tax office made a mistake and thought he was somebody else who had gone bankrupt and are now demanding the money back. We looked into this when it first happened as we had just sent in a tax query to the office as we thought he had been paying too much tax, so we thought that the tax office knew what they were doing and he was getting tax free status because of previously paying to much tax. Dies anyone know if there is anything we can do about this. It was obviously the tax office own fault for making this mistake and after chasing up for the past couple of months only finally to be told we need to pay the money back and we are really going to struggle with this. Is there any kind of claim we can make against them or appeal...please help

silvercar

As the money is owed, it will have to be paid. As the error was theirs, you should be able to agree a timeframe to pay it. Ask for them to adjust your tax code for 2008-09 and recoup the tax through your tax code. That will spread the payments through the tax year upto March 2009.

aelengland

thanks, also another query. I work for a local education authority and teach at 21 different schools a week. I send in a mileage form each month and they give me money back on my paycheck although i am not sure at what amount they re-pay the mileage. My question is, how come i am taxed on this...is this correct or is there some way of claiming back the tax money they are taking off me. As i have already forked out the money for the petrol/mileage etc...its seems a bit weird...any suggestions?

LittleVoice

First of all find out what rate is being applied to paying the mileage.

Second just check with payroll that they are taxing this sum - just because it is paid at the time of salary doesn't mean it is taxed. (You may be able to check this yourself by looking at the payslip but if you are doubtful, contact payroll.)

You shouldn't be taxed on it (unless it is above the taxman's agreed rates - highly unlikely!) though I think it may be included on P11Ds.

CLAPTON

aelengland wrote: »

thanks, also another query. I work for a local education authority and teach at 21 different schools a week. I send in a mileage form each month and they give me money back on my paycheck although i am not sure at what amount they re-pay the mileage. My question is, how come i am taxed on this...is this correct or is there some way of claiming back the tax money they are taking off me. As i have already forked out the money for the petrol/mileage etc...its seems a bit weird...any suggestions?

why do you think you are being taxed on the mileage?

the HMRC allow 40p per mile for the first 10,000 then 25p after that without paying tax. If you get less than that you can get a tax refund, if you get more you will need to pay tax on the excess. You need to find out what rate you are being paid.

jimmo

On the original question of the underpayment, yes it’s their fault, but their attitude is that you are responsible for checking the Coding Notices and pointing out any errors. In the eyes of the law you are certainly not 100% innocent but if repaying the money is going to cause you financial difficulty, or, if you can convince the taxman that it will, I think there’s a very good chance that you can ask them to collect it by way of coding adjustments, over 3 years.
Technically that’s not actually correct but we used to do it in my days. As far as I know, I think they still do it Ask nicely first but if that doesn‘t work then push your luck.
With regard to your mileage, I am guessing that you are classified as a Peripatetic Teacher and employed by Local Government. To anybody not employed by Local Government, or working in a Tax Office which does not deal with a Local Government employer the structure with, I think, Essential Users, non- essential users and occasional users is a mystery to behold.
If you are a member of a Teachers’ Union then talk to your Union Rep. Otherwise talk to your paying department.
I rather expect that you are already getting the right deal but if you are entitled to more those are the people who will understand best.

fengirl_2

Regarding the mileage, if the LA is refunding your home to work travel, then this is taxable. However, if you are travelling between one school and another during the day, this is not taxable.