Wrong tax code by HMRC

blondie223

My mum who is 62 has just been informed by the HMRC that they have been using the wrong tax code " This underpayment has arose as the wrong code has been operated and the code operated did not include a deduction for retirement pension which is taxable. This underpayment will be colleted through a restriciton in your 2008/08 tax code" She has filled in all the forms and now has to pay £1127.06 in a year:mad: What can she do as it was HMRC fault for using the wrong code.

Thank in advance

Mikeyorks

She can ask they code it out over a longer period ... and particularly if it is their error (because they had the data).

But she has a responsibility for checking her code and/or notifying them of the pension, if they weren't aware of it?

Murdina

have a look at Extra statutory concession A19 which is reproduced here and in theory enables such arrears of tax to be written off

http://www.hmrc.gov.uk/manuals/epmanual/ep6601.htm

HMRC interpret it quite harshly but if there are any extenuating circumstances which might have led to misunderstanding her code (illness, poor eyesight etc) then try making a claim and mention those.