Massive tax bill from HMRC received! Wrong but how did it happen?

19 replies
Found 12th Dec 2016
I just opened a letter from HMRC to my wife - she actively wants me to handle our finances so nothing wrong there. It was an amendment to tax calculation for 2015-16 demanding over £27,000 in tax, half in January and half in July!

Nearly had a heart attack!

Looking at the calculation they have added in interest from UK banks (£600 odd), Dividends - £95K, UK pensions £32K and gains on life insurance policies £18K.

You reckon they just muddled her up with ANOther? Or is it some malicious prankster at HMRC?

Either way, can't deal with it until she comes home and gives HMRC her permission for me to speak on her behalf.

Anyway, for the first time I'm grateful to MISC for any words of sympathy!, I wouldn't want to share this with anybody I know in real life.

Massive shock, had to take 2 Aspirin as I felt my heart rate increasing, then I read the detail & realised it's a glitch.

Do you think I could go online & simply amend her tax return (I know all the access details) or is this better handled in a phone call?

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19 Comments

I am sure you will shortly be receiving contact from a cousin in Nigeria who can handle the payment of tax for you for a low fee.

You need to pay it and then claim it back, thats how inland revenue operates

Original Poster

airfix

You need to pay it and then claim it back, thats how inland revenue … You need to pay it and then claim it back, thats how inland revenue operates



yeah right lol

i wait for wife to do it, they a lot to do , u get in trouble if u do it on line

also google the number incase it a false 1 as well
Edited by: "dawnheadley2" 12th Dec 2016

I get plenty of tax refund emails, though looking at the source of where the emails were sent from, they don't look like they're from HMRC.

CONTACT HMRC, YOU NEED DO SPEAK WITH THE PAYE DEPARTMENT, REQUEST A RECALCULATION AS THERE IS AN OBVIOUS ERROR. I WORKED FOR HMRC PAYE, THE RECONCILIATION DEPARTMENT CAN OFTEN GET IT WRONG FOR VARIOUS REASONS (TO MUCH INFO TO GO INTO SO I WONT), ITS NOT A PROBLEM, WOULDN'T WORRY ABOUT IT, CONTACT THEM AND THEY WILL GET IT RE-LOOKED AT.

Original Poster

dataload

it's legit, send payment to [email protected]



it's not an email, it's a letter & does have her correct salary & benefits on it, so it's legit

I'm wondering about compo for the distress caused & timewasting - I bet we're looking at an hour on the phone tonight

compo? yay or nay?

Original Poster

The complaints process

Where HMRC has handled a case badly or if a dispute has failed, there is a complaints procedure which also provides for payment of compensation if a claimant has lost out financially, or suffered anxiety or distress, as a result of HMRC's error or delay.

Compensation

If the claimant has suffered financial loss, or particular anxiety or distress, they should consider claiming compensation.

On financial loss, the factsheet says that HMRC will consider refunding any reasonable costs you have had to pay as a direct result of HMRC's mistakes or unreasonable delay. It lists, as examples, postage, phone calls, and professional fees. The former COP1 also listed under this head travelling expenses and financial charges. The claimant should keep evidence of all such costs (receipts etc) and show them to HMRC when asked.

On payments for worry and distress, the factsheet has this to say:

‘If you think our actions have affected you particularly badly, causing you worry or distress, tell us straight away. We may be able, in some cases, to make a payment to apologise’.

The former COP1 added:

‘These payments, which are not intended to put a value on the distress you have suffered, will usually range from £25 to £500’.

revenuebenefits.org.uk/tax…ts/

Hmrc are a joke, every year they get mine wrong and my employer clearly puts in the correct data online as I check what they enter, they then have a clear payment but each year it's always wrong from I'm paying too little and then I paid too much.

luvsadealdealdeal

The complaints processWhere HMRC has handled a case badly or if a dispute … The complaints processWhere HMRC has handled a case badly or if a dispute has failed, there is a complaints procedure which also provides for payment of compensation if a claimant has lost out financially, or suffered anxiety or distress, as a result of HMRC's error or delay.CompensationIf the claimant has suffered financial loss, or particular anxiety or distress, they should consider claiming compensation.On financial loss, the factsheet says that HMRC will consider refunding any reasonable costs you have had to pay as a direct result of HMRC's mistakes or unreasonable delay. It lists, as examples, postage, phone calls, and professional fees. The former COP1 also listed under this head travelling expenses and financial charges. The claimant should keep evidence of all such costs (receipts etc) and show them to HMRC when asked.On payments for worry and distress, the factsheet has this to say:‘If you think our actions have affected you particularly badly, causing you worry or distress, tell us straight away. We may be able, in some cases, to make a payment to apologise’.The former COP1 added:‘These payments, which are not intended to put a value on the distress you have suffered, will usually range from £25 to £500’.http://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/making-a-complaint/hmrc-complaints/


If it's obviously wrong and, as you first suggested, HMRC have got your wife confused with someone else then it should all be sorted out quite easily.

Why does everyone nowadays think that they should be entitled to compensation any time that something goes wrong?

I would just login and put in correct details and u should be able see there and then the correct details of how much needs paying etc. why are u stressed if she doesn't have those amounts and types of stocks maybe she does and is a very rich woman whom never told u. so u will probably need wait for her come home and ask interrogate her about this before updating details. ps don't worry too much the hmrc have been messing up a lot of stuff been all over the news some stupid American company has been contracted whom have lost the contract well until 2017 they've still got it. one of may relatives who earns around 9000 pounds was supposedly earning over 95000 and was told to.0ay back tax credits and all payments to be stopped from a few months sounds similar it's happened to lots of people haven't u heard about it in the news.

Sorry to learn of your distress with this correspondence from HMRC. I, too had the shock of my life when I got a recent demand for underpayment of tax. I'm paye and have never been self employed & no savings to attract tax. My call to them was dealt with unsympathetically and was told in no uncertain matter of fact way - that this is my fault as my tax liability is my personal responsibility. I'm waiting a recalculation & another letter. Once received I will be seeking advice on the matter. I wish you all the best and hope for a swift resolution, as I too found this most distressing and worrying as I do not have the funds requested for repayment.

Original Poster

3gees

Sorry to learn of your distress with this correspondence from HMRC. I, … Sorry to learn of your distress with this correspondence from HMRC. I, too had the shock of my life when I got a recent demand for underpayment of tax. I'm paye and have never been self employed & no savings to attract tax. My call to them was dealt with unsympathetically and was told in no uncertain matter of fact way - that this is my fault as my tax liability is my personal responsibility. I'm waiting a recalculation & another letter. Once received I will be seeking advice on the matter. I wish you all the best and hope for a swift resolution, as I too found this most distressing and worrying as I do not have the funds requested for repayment.



thanks

call hmrc to look into it, forwardly an error unless you're earning ridiculous amounts of money that that sum them becomes reasonable

Original Poster

this is how it happened:

they scanned a document with my wife's Virgin ISA details on it

but left more documents underneath it which also got scanned & added to my wife's tax return erroneously

westy125

Hmrc are a joke, every year they get mine wrong and my employer clearly … Hmrc are a joke, every year they get mine wrong and my employer clearly puts in the correct data online as I check what they enter, they then have a clear payment but each year it's always wrong from I'm paying too little and then I paid too much.


HMRC do not get your tax wrong, they simply receive the information from either YOU or YOUR EMPLOYER.

This info is then automatically processed which then gets issued out to you as part of your P60.

You need to ensure your Tax code is on a cumulative basis and not Week 1 Month 1, generally if your tax code changes part way through the year it will automatically go to W1M1 which doesn't recoup any previous tax owed therefore at the end of the financial year you will have an underpayment (in most cases).

If you have constant underpayments it will be due to the information provided to HMRC.

2 aspirin , Lmao

Lol. I had a tax correction demand this year asking for an extra 50k. I was so worried i had forgotten to declare something by mistake and that they were going to fine me for non disclosure.

I was so relieved when i got to work the next morning to find out from colleagues that my employer had messed up everyone's return to hmrc and gave them rediculously inflated salaries information. We all spent the whole morning calling hmrc to ask for a review.
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