Employer PAYE Underpaid - what to do?
Discussion
Thanks to any in the know that may be able to give me a bit of advice here.
On the 30 November 2004 I left an employer and received a P45.
Leaving mid/late tax year like that enabled me to file my tax return and make a tax refund claim that amounted to IIRC about 4K.
Recently I have had correspondance from HM Revenue and Customs asking for further information about my year end 2005 filing, so I duly faxed over a copy of my P45.
Accordingly thay have just written back to me informing me that:
[quote=HM Revenue & Customs]
The actual amount of tax deduced from your pay and paid to the Department is £x,xxx.xx not the figure £y,yyy.yy shown on your P45
[/quote]
Where yyyy - xxxx = £2700.
So basically my previous Employer appears to have underpaid my tax by £2700, so the amount I reclaimed was £2700 too much and now the Revenue want £2700 from me.
Ouch....
Examining my P45 I see now that my Ex Employer transposed two digits... a 96 where it should have been 69
I'm
ed yes?
HM Revenue & Customs appear to be quite reasonable about this and are indicating that
[quote=HM Revenue & Customs]
the error in your return appears to have been made in good faith and in these circumstances I do not propose to seek any penalties.... yada yada yada
[/quote]
What's worse is that at the end of their letter they state
[quote HM Revenue & Customs]
the tax payer is responsible for the entries in the return even if provided by an employer
[/quote]
Now this seems a little unfair since I took the numbers on my P45 in good faith, I claimed back a tax refund based upon the numbers on my P45 and now the HM Revenue are stating that I made a mistake, which is kinda true.....
Any advice please..... obviously beyond contacting my ex Employer, which I will be doing in a minute!
ARSE
cheers
Ex
On the 30 November 2004 I left an employer and received a P45.
Leaving mid/late tax year like that enabled me to file my tax return and make a tax refund claim that amounted to IIRC about 4K.
Recently I have had correspondance from HM Revenue and Customs asking for further information about my year end 2005 filing, so I duly faxed over a copy of my P45.
Accordingly thay have just written back to me informing me that:
[quote=HM Revenue & Customs]
The actual amount of tax deduced from your pay and paid to the Department is £x,xxx.xx not the figure £y,yyy.yy shown on your P45
[/quote]
Where yyyy - xxxx = £2700.
So basically my previous Employer appears to have underpaid my tax by £2700, so the amount I reclaimed was £2700 too much and now the Revenue want £2700 from me.
Ouch....
Examining my P45 I see now that my Ex Employer transposed two digits... a 96 where it should have been 69
I'm
ed yes? HM Revenue & Customs appear to be quite reasonable about this and are indicating that
[quote=HM Revenue & Customs]
the error in your return appears to have been made in good faith and in these circumstances I do not propose to seek any penalties.... yada yada yada
[/quote]
What's worse is that at the end of their letter they state
[quote HM Revenue & Customs]
the tax payer is responsible for the entries in the return even if provided by an employer
[/quote]
Now this seems a little unfair since I took the numbers on my P45 in good faith, I claimed back a tax refund based upon the numbers on my P45 and now the HM Revenue are stating that I made a mistake, which is kinda true.....
Any advice please..... obviously beyond contacting my ex Employer, which I will be doing in a minute!
ARSE
cheers
Ex
Edited by TheExcession on Monday 12th June 19:23
The Revenue do not initially check Self Assessment tax returns. They merely process the return and usually ask for or refund the tax csalculated by the tax payer. If an error comes to light later, they will insist on a correction to the otriginal liability calculated.
It is absolutely imperative that those who complete Self Assessment tax returns MUST realise that the full and sole respnsibility for paying the correct tax is theirs and theirs only.
The only concession granted will be where a third party such as an employer or bank provide the tax payer with erroneous information. In these situations, the Revenue will usually cancel any penalties or interest that they are actually legally entitled to. They will insist that any tax shortfall be paid in full.
Tax liabilities can be paid up front, paid by installment if a good case is made or collected through an amendment to your current tax code.
It is absolutely imperative that those who complete Self Assessment tax returns MUST realise that the full and sole respnsibility for paying the correct tax is theirs and theirs only.
The only concession granted will be where a third party such as an employer or bank provide the tax payer with erroneous information. In these situations, the Revenue will usually cancel any penalties or interest that they are actually legally entitled to. They will insist that any tax shortfall be paid in full.
Tax liabilities can be paid up front, paid by installment if a good case is made or collected through an amendment to your current tax code.
wedge girl said:
Am I right in thinking you are no longer a UK resident? Not sure if it makes a difference though.
Indded, should've made it clearer... In 2004 I moved over to the Republic of Ireland and so was due a refund on my tax.
Foolishly I assumed the details on my P45 were correctand so made my 2005 return using those details instead of looking back over all my payslips. Having completed my return based upon the P45 details they sent me a refund of some £4300, obviously a bell has rung somewhere and they've investigated this and have now decided that I should only have reclaimd £1603, and so owe then £2700.
Bummer, as said once I get this double checked, I'll either move house again or negotiate a long term settlement.
cheers
Ex
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