HMRC and Tax P11D

[dabello74]

My employer has submitted my P11d for 09-10 & 10-11 The tax office did not take any tax payments from me. 11-12 This year I am being hit hard as they are now taking the underpayments in tax for these last two years and its crippling me. I wrote to thetax office to check my p11d on these two years and they have confirmed they are taking as much to the limit this year and will continue next year. In total accumulative is 5k. On some FAQ paperwork the tax office sent states that if all info was done and submitted correctly and they did not act quickly enough they may be liable to waive this underpayment, is this true? I also heard that the law states they may take up to 6 years before they start taking the underpayments is this true? The tax office basically did not act quick enough to amend my tax codes and now as a result am being hit hard! Any advice please!!!!

[Eric Mc]

If your employer submitted the P11Ds before the relevant statutory submission deadlines and HMRC failed to act on them in time, then you may be eligible for a claim under Extra Statutory Concession A19.

Did you not realise that your Tax Codings were incorrect for 2009/10 and 2010/11?

When did your employer submit the 2009/10 and 2010/11 P11Ds

[dabello74]

He submitted through the paye on time when they were due april may. I noticed the codings and mentioned it to my employer but he told me it was fine. I blame myself for not getting in touch with hmrc at the time!

[Eric Mc]

This is a perrenial flaw with the PAYE system. For it to work properly, three people/groups have to be pro-active - the employer, HMRC and the employee.

If any one of the three fails to act properly, the wrong tax will be paid.

HMRC would argue that you personally should have contacted them directly when you realised there was a problem. Claims for an ESC A19 waiving of the tax are dependent on the taxpayer showing that they recognised there was a problem early on and contacted HMRC about that problem as early as possible. They would also want to see documentary evidence that you contacted them.