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!