Tax Underpayment P800 advice needed - HotUKDeals
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Tax Underpayment P800 advice needed

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Hello, just need some advice if possible please. Here's the situation, it's quite long to explain so please bear with me I was working one job, job A. Job A I was working about 15-20 hours a week…
thunderb0lt Avatar
5y, 11m agoPosted 5 years, 11 months ago
Hello, just need some advice if possible please. Here's the situation, it's quite long to explain so please bear with me

I was working one job, job A. Job A I was working about 15-20 hours a week getting approx £200.

I started job B in November 2009, I reduced my hours of job A to 8 hours a week, getting approx £50-60 a week. Job B was now my main job, approx £19,000 per annum.

When I started job B, I completed a P46, I informed Tax office of change, they gave me tax code of 600L for Job B and 47T for job A.

Thats all very well and good.

I noticed first month pay for job B I was taxed BR but this was to be expected seeing they didn't have correct tax code, further months, it went from not being taxed at all to be refunded tax, being taxed odd amounts. It was only Feb or March where I was taxed correct amount for job B.

I queried this with payroll and explained that I didn't want to be in a position whereby I was asked to pay this back they said words to the effect of don't worry it's meant to be like this you are due all these refunds, ok then.

So, come October 2010, I receive P800 advising of £850 underpayment, it would be recovered through tax next year.

I wrote to them in Feb explaining everyhting with copies of payslips, and on the notes of P800 it said that if tax hasn't been correctly taken through PAYE employers are liable. I explained all this. All I would be under hardship, as I can't afford to pay such amount over a year.

Now 6 weeks after my letter, I received a generic reply saying, that the underpayment was not due to my employers fault through PAYE, and I still need to pay back monies. As a compromise they are willing to recover money over 2 years opposed to 1 year.

Now my question is should I just accept this or should I challenge them further, I mean if I owe this fair enough but they could at least give me a proper explination as to how this underpayment came about as I officially declared everything.

They want me to reply back before new tax year if I accept the two year compromise.

Am I likely to get this waived if I challenge them, or should I just let it go. Has anyone managed to get theirs waived.

Sorry for the long post.

Thanks in advance!
thunderb0lt Avatar
5y, 11m agoPosted 5 years, 11 months ago
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#1
Unfortunately you will not be able to get the underpayment waived, they have upto 6 years to ask for underpaid tax.

HMRC will also say that it is the taxpayers responsibility to check their tax affairs are in order. You did the right thing by speaking to your employer but it looks like they have given you the wrong advice. I would say double check all of the figures to make sure all income and tax has been accounted for by HMRC, if it has your best option would be to ask to repay over 2 years.
#2
Thanks for the reply. I have crosssed checked the figures on the P800 with my two P60 and it seems correct. I don't understand why I was taxed odd amounts and in one or two months not taxed at all in Job B and even received tax refund in one month.

HMRC should have at least given me a proper explination, this is what angers me!

£850 over two years is about £35 a month, damn.

Edited By: thunderb0lt on Mar 17, 2011 21:53
#3
I used to work for hmrc and unfortunately they will not write off or reduce the money owed. As has been explained they can collect it over 2 years as a reduction in your tax code. Once your tax codes changed as your main job changed you should have been put on a wk1 code(with an x at the end) to stop any backdating to stop any refunds. Again unfortunately it's always the taxpayer who gets the short straw.
#4
I would say if you can afford it then take the 2 year offer. Dealing with the reveue is like smashing your head against the wall.
#5
@darkhairedgal, thanks so who whould have changed it to x, my employer or HMRC
@aleternate, you are so right, I had so much troubles in trying to get through to an advisor on the phone!

It seems like challenging this will get me no where and my only option is to have the amount recovered over two years!

Thanks
#6
When u say you informed the tax office after completing a p46 did you call them? I assume that you ticked box b of the p46 which states you have had another job or benefit in that tax yr. If that's the case then your payroll should have automatically put an x at the end of your code to stop any backdating. If you actually spoke to the tax office yourself after the p46 was completed then the advisor should have picked up on this also and sent out a new tax code with an x at the end. I saw so many problems like yours which could have been avoided with basic checks by the employer.
#7
Well, I can't actually remember which box i ticked. When I said I informed them, I meant I called up HMRC and advised of two jobs and I wanted my new job to be main job, so they changed my tax codes.

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