HMRC collecting tax monies?
Discussion
Due to the recent cock-up by the HMRC my missus received a nice letter from HMRC mid-december last year stating that she is due them £2290 due to their system errors. She is PAYE and it is purely an HMRC cock-up. They said they will send out a letter in due course explaining how they plan to collect the due monies. She received a letter this morning stating that she must pay the money, in full by 6th of March. Where does she stand with regard to this? They cannot seriously expect somebody to pay over £2k in a lump sum with 3 weeks notice. Can they? Can she phone them up and tell them to take a running jump? We have conceded the fact that she will have to pay the money, but we thought her tax code would be changed so they recoupe their money over a set period of time.
Any help and advice will be greatfully appreciated.
Cheers.
Any help and advice will be greatfully appreciated.
Cheers.
Have a look here as a start.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta...
For support on money stuff try here http://www.citizensadvice.org.uk/
When my employers cocked up on my PAYE this was the kind of bill the tax man stuffed me with. I got in touch with the complaints dept and got it resolved with them. Luckily didn't have to pay anything but they were very helpful.
Trace
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta...
For support on money stuff try here http://www.citizensadvice.org.uk/
When my employers cocked up on my PAYE this was the kind of bill the tax man stuffed me with. I got in touch with the complaints dept and got it resolved with them. Luckily didn't have to pay anything but they were very helpful.
Trace
This is part of the big error made by the HMRC last year where some people were given rebates and others are due the HMRC. The HMRC have made an arse of things. Has anybody else on here been hit by their incompetency? If so, how are they asking you to pay back the money? There hasn't been anything reported about it in the press recently, well not that I have seen. I just think it's ridiculous that they are asking for such as large sum of money, in one go, in such a short period of time. Luckily she can afford to pay it off, but what if she couldn't? Would they take all of her wages untill it was paid? Would she be given a CCJ as per threat?
Why did your Mrs think her tax affairs were correct?
Did she check her tax codings when they were issued to her?
Unfortunately, on every tax coding issued, HMRC advises that every taxpayer checks the details shown on the coding to ensure that the coding is correct. If they are not sure about the coding, they are advised to contact HMRC and let them know.
Did your Mrs do this?
If she did, and HMRC failed to act on the data given by your wife, then she might be able to escape the demand by invoking Extra Satutory Concession A19 - usually refered to as ESC A19).
However, if she did nothing at any time then it is not likely that ESC A19 will be applicable.
Can you work out the circumstances behind why HMRC issued incorrect codings in past years?
Did she check her tax codings when they were issued to her?
Unfortunately, on every tax coding issued, HMRC advises that every taxpayer checks the details shown on the coding to ensure that the coding is correct. If they are not sure about the coding, they are advised to contact HMRC and let them know.
Did your Mrs do this?
If she did, and HMRC failed to act on the data given by your wife, then she might be able to escape the demand by invoking Extra Satutory Concession A19 - usually refered to as ESC A19).
However, if she did nothing at any time then it is not likely that ESC A19 will be applicable.
Can you work out the circumstances behind why HMRC issued incorrect codings in past years?
Eric, this is the Lounge, not Business forum. I consider myself relatively intelligent and highly numerate(I have a degree in chemistry!) - I don't have a clue if my tax code is correct!
Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
Eric Mc said:
Why did your Mrs think her tax affairs were correct?
Did she check her tax codings when they were issued to her?
Unfortunately, on every tax coding issued, HMRC advises that every taxpayer checks the details shown on the coding to ensure that the coding is correct. If they are not sure about the coding, they are advised to contact HMRC and let them know.
Did your Mrs do this?
If she did, and HMRC failed to act on the data given by your wife, then she might be able to escape the demand by invoking Extra Satutory Concession A19 - usually refered to as ESC A19).
However, if she did nothing at any time then it is not likely that ESC A19 will be applicable.
Can you work out the circumstances behind why HMRC issued incorrect codings in past years?
It's quite long winded but at the end of the day when it comes down to it, it's her own fault. She isn't the most attentive to these types of things. She collects her money at the end of each month and that's that. She works two jobs. She is a swimming teacher for the council part-time and a nursery teacher full time. She had informed the council the she has another full time job. However the council didn't do anything with this information. She should have called the HMRC herself. She just left this thinking she had done what she needed to do. It turns out that her tax code was 647L for both jobs. So this is where the money owed comes from. She was naive and stupid and I have made sure everything is now in order. She will have to pay the money back, she knows this and isn't too bothered. However I think it is completely unreasonable to ask for it in a lump sum as it is over 2k. Anything under 2k and your tax code is amended to recoup the money over a year. Surely it should be the other way round and Give her less than 3 weeks notice. Did she check her tax codings when they were issued to her?
Unfortunately, on every tax coding issued, HMRC advises that every taxpayer checks the details shown on the coding to ensure that the coding is correct. If they are not sure about the coding, they are advised to contact HMRC and let them know.
Did your Mrs do this?
If she did, and HMRC failed to act on the data given by your wife, then she might be able to escape the demand by invoking Extra Satutory Concession A19 - usually refered to as ESC A19).
However, if she did nothing at any time then it is not likely that ESC A19 will be applicable.
Can you work out the circumstances behind why HMRC issued incorrect codings in past years?
The problem we face is, her savings are tied up in unaccessible accounts at the moment. So she has the funds to pay the money back, she just can't access them untill the end of this financial year. So she isn't going to be able to pay it back by the deadline.
She is phoning the HMRC tomorrow, but what are they likely to say? Tough and we are going to take all of your wages? We are going to issue you with a CCJ?
Puggit said:
Eric, this is the Lounge, not Business forum. I consider myself relatively intelligent and highly numerate(I have a degree in chemistry!) - I don't have a clue if my tax code is correct!
Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
Don't disagree about the moral point.Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
However, knowing what your tax code should be is not THAT difficult to understand (most of the time - there can be exceptions).
People should take about 30 minutes out of their lives to get a basic understanding of how the system works. It usually takes me about 5 minutes to explain it to clients.
For most people under pensionable age, tax codes remain straightforward unless -
they change jobs frequently a number of times in any one tax year
they have complicated Benefit in Kind Arrangements
they are higher rate taxpayers
they have more than one source of PAYE taxed income during the tax year
Most of the problems which have been emerging in recent months have been due to the last point. People who (say) have a job and a pension of some sort or have a full time job and a part time job running concurrently can have been issued with incorrect codings in the past. The main mistake has been that people were issued with the 647L Coding for BOTH jobs. The 647L code represents their Personal Tax Allowance of £6,475. You only get one of these allowances each tax year so if you have two jobs and both jobs show a tax code of 647L there is obviously something seriously wrong and you need to act quickly.
Aha - your post arrived whilst I was typing this one.
It is a "two jobs" problem - as I suspected.
When she speaks to HMRC she needs to ask if she can spread the repayments over say, 6 months, as she cannot pay it all at once.
Edited by Eric Mc on Sunday 13th February 09:49
While we're on the topic - I filled my self-assesment in recently for 2009-2010. I only earned money from one job, on PAYE.
Without anything entered, apart from my salary and tax/NI deductions I was asked for an extra £158. When I added my P11D details, this rose accordingly.
Tax calculation websites agreed with my P60 for that period, to the digit. What could possibly create the demand for £158?
Without anything entered, apart from my salary and tax/NI deductions I was asked for an extra £158. When I added my P11D details, this rose accordingly.
Tax calculation websites agreed with my P60 for that period, to the digit. What could possibly create the demand for £158?
philthy said:
Why on earth was a tax query posted in "Speed, Plod and the Law"?The best place for such questions are the "Business", "Employment" or "Finance" forums as that is where most of the people who know and understand tax hang out.
Eric Mc said:
Don't disagree about the moral point.
However, knowing what your tax code should be is not THAT difficult to understand (most of the time - there can be exceptions).
People should take about 30 minutes out of their lives to get a basic understanding of how the system works. It usually takes me about 5 minutes to explain it to clients.
If it's that easy to understand tax why do we have accountants. However, knowing what your tax code should be is not THAT difficult to understand (most of the time - there can be exceptions).
People should take about 30 minutes out of their lives to get a basic understanding of how the system works. It usually takes me about 5 minutes to explain it to clients.
Edited by Eric Mc on Sunday 13th February 09:49
In actual fact, very little of our time is spent dealing with PAYE only type clients. Most of my clients are people who run their own businesses or have non-taxed sources of income - such as rent or Capital Gains. They therefore usually need the help of accountants to prepare annual trading accounts and to collate their personal tax information for Self Assessment tax purposes.
They do have PAYE issues sometimes, especially if the are directors of their own limited company and/or receive a pension of some sort.
I think it is frankly quite shocking that ordinary people seem to be so ignorant of how the coding system works - as it effects EVERYBODY on PAYE, which is well over 2/3 of all taxpayers.
I'm not expecting people to be PAYE experts, or coding gurus, but just to know enough to recognise when things may not be correct.
They do have PAYE issues sometimes, especially if the are directors of their own limited company and/or receive a pension of some sort.
I think it is frankly quite shocking that ordinary people seem to be so ignorant of how the coding system works - as it effects EVERYBODY on PAYE, which is well over 2/3 of all taxpayers.
I'm not expecting people to be PAYE experts, or coding gurus, but just to know enough to recognise when things may not be correct.
Eric Mc said:
Puggit said:
Eric, this is the Lounge, not Business forum. I consider myself relatively intelligent and highly numerate(I have a degree in chemistry!) - I don't have a clue if my tax code is correct!
Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
Don't disagree about the moral point.Legally HMRC are entitled to the money, morally of course they could not be further wrong unless they demanded the money with a rifle.
However, knowing what your tax code should be is not THAT difficult to understand (most of the time - there can be exceptions).
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