P800 Tax Calculation help

[di30]

Re: P800 Tax Calculation help

Thanks again.

I've spoken to her on the phone again for a few mins, and she is not sure whether to go the error of the employer or of the other one "HMRC".

Because she says, the employer confirmed by email they received the p45 which she has a copy of, and in regards of the HMRC, when her income was reviewed last year (Oct) by the compliance section of the HMRC, then why wasn't is acted on then and only now they have decided to do this.

Just a thought though, is the compliance section the same as the HM customs side of it, shouldn't they have forwarded the information on about the income, because this may have been about tax credits not sure, but surely they would have held the info on data base??

Confusing

[SXGuy]

Re: P800 Tax Calculation help

Sounds about right Di.

They will issue her employer with a new tax code to deduct £20 a month more from her wages. Best result you can hope for really if she cant argue the point about them being late noticing the error.

Make sure she checks her new tax code on her first payslip after April, as HMRC can sometimes be late sending coding notices, and she may get a big chunk deducted 2 or 3 months down the line, and we wouldnt want that.

[di30]

Re: P800 Tax Calculation help

Oh i forgot to say, she said the guy said it was payable as from next April at about £20 a month until paid, something like that, so I assume they would be adjusting her tax code as from then perhaps?

[di30]

Re: P800 Tax Calculation help

Right, i have quickly passed on the message, her puter is off for few days coz she changing over to another provider, so she may pop in later or tomorrow, so i can show her what she can try to do about it.
And she says thank you too. x

[di30]

Re: P800 Tax Calculation help

Ooh thank you, I shall pass on the word, it makes sense what you said.
She is in a tizwaz about this, I told her try not to worry.

Fab info, thank you x

[SXGuy]

Re: P800 Tax Calculation help

Oh also Di, I dunno if this will help her, its difficult to judge whether everyone envolved did their job properly, but if she can somehow find proof, that they did and HMRC failed to respond in time, then she may be interested to read this.

http://www.hmrc.gov.uk/esc/esc.htm

[SXGuy]

Re: P800 Tax Calculation help

Hey Di.

Tough one, employer is responsibe for submitting the P45 on time, that being said though, when the end of year submissions go in, they must clearly state on the P14/35 the date the employee left employment.

So even if the employer failed to submit the P45, the end of year submission will clearly show she left at that date (providing the employer has shown her as left, and hasnt just stuck her on hold)

The thing with HMRC is, they would prob want any tax due to be paid, before they eventually get round to sorting it and refund any overpayments, that of course is not your friends fault.

If it were me, i would tell your friend, to telephone HMRC's PAYE section, and ask to speak to an inspector, or someone higher than the telephone monkies, to explain the situation to them.

If she can give them the date she left her old employment, the amount of Gross pay up to that date and the ytd tax deducted (can be found on her last payslip from previous employer), HMRC can calculate any amounts due for refund, and can issue her new employer a new tax code if need be.

From what you have said, HMRC believe was given two tax allowances while being shown as working two jobs, her arugment is, she left one job to start another, which means her allowance would continue across, there was no 2 jobs, so there would not be any underpayment of tax, unless her new employer failed to add tax and gross pay already stopped.

If her new employer failed to carry across her previous PAYE, and gave her full allowances, then it would not take into account, gross pay to date, or tax paid to date, which could result in an overpayment or underpayment.

As i say, HMRC can issue a new tax code, so she can pay the difference off, i believe it has to be under a certain amount though but i cant see her owing more than the limit anyway.

[di30]

Yesterday, a family friend received 2 letters of P800 Tax calculations.

One was that of stating that she was due a refund from a 2008-09 award of £449

and

Another one to say there was an underpayment in 2010-2011, so the above refund will be used to reduce the underpayment to bring the amount down to £248.

On the 2008-09 - it says she did not receive the full benefit of all her tax free personal allowance (which was why there was a refund due), and on the 2010-11 - it says she has 2 employments at the same time where both employers were applying the PAYE code giving the full tax free allwances, so therefore received more allowances than due.

(which is why they will be using the refund from the other as stated).

However, she did give them a ring yesterday to confirm she did not work 2 employers at the same time, but finished one to start another.
And she also confirmed that when she received the P45 from the previous company she worked for, she handed it to the new employer (as you do), so left it to them to deal with.

Last year well over 13 month now she says, she had a letter from the compliance section of the HMRC who wanted to check some details, because they were reviewing income etc, so she dealt with them instantly, and even has the letter to prove that.
It appeared that the employer did not add the prevous income to the new income.

Anyway, she told the guy in relation of his matter that the underpayment is no fault of her's, she done what she had to do by passing the relevant P45 details and she confirmed she is naive about tax issues, and that should have been dealt with by the employer (payroll).
The guy said, yes but "you" still have to pay it", she said, she understands but she does think its down to the employer to put this right.
She shown me a part of the leaflet that was enclosed with the letters that says, you can hold them (employer) responsible, and if agreed they should pay for it.

And another thing as well, the HMRC known of the details 13 months ago (as said above), so why wait until now??

Any thoughts on this please guys.

She said she still has the email from the employer who confirmed they did receive the P45, back when she started with them in 2010.

Cheers folks.