Tax Underpayment demand

Discussion in 'Finance & Pensions' started by whitemouse, Jan 19, 2011.

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  1. Hi all,

    Looking for some assistance here.

    HMRC, in their wisdom seem to believe that I owe them approx £3000 in a tax underpayment. :pissed:
    Seems that they may have cocked up with my pension payment.
    I've sent in the objection, but, as usual, there is a definite slowness in response from our tax masters !!
    Anyone else experienced this travesty - and what did you do ?
    Would appreciate any advice,

    Thanks Guys
  2. I had trouble with that lot myself. I would advise you to get an accountant to go through your tax affairs. You might come out of this finding that they owe you money back. That what i did. Good luck with the gestapo.
  3. Just got a very similar think myself last week - tax code change to my pension from BR to 40% closely followed by a tax demand for just shy of 3 grand. Have done nowt about it yet but need to sort it soon :-(
  4. Whitemouse and anglichanin,
    I have just resolved a similar problem due to the taxman/pension paymaster who fcuked up my pension by giving me the wrong tax code (bearing in mind when i first started receiving my pension i queried my tax code and they both said it was ok). I underpaid tax in 2008-9 and 2009-10 to the tune of £2559. I put forward my case (including copied correspondance which stated I was on the right tax code). Upshot is I did owe the taxman money and i had to pay it (wakners). I dont know where abouts you are but go to your local tax office (in pompey its at lynx house... google it) they were helpfull in filling the (not very ex matelot friendly) tax forms you will be sent through the post. basically you WILL be shafted and have to pay it. The only bonus is that if it is less than £2500 you can pay it back via an adjustment of your tax code, over that amount arrange via direct debit or one off payment. Basically the fcukers have you over a barrel.

    And for everyone else due to start drawing their pension..... Please make sure that the Taxman/ pension paymaster have sorted their shit out and you are on the right taxcode
    Last edited: Jan 19, 2011
  5. Oh yes i also forgot to may find out that your pension will drop as well to reflect your new tax paid
  6. Sarkings advice is pretty good. If you can get an accountant to go through it all with you then go for it. I recieved a demand from HMRC for 2 grand in underpayed tax. A cousin who is an accountant had a look and advised me to challenge it and turned out they owed me 600 quid in reality. Best of luck with it all. The revenue lot will shaft you right royally if you let em
  7. jockpopeye

    jockpopeye Badgeman Book Reviewer

    Accountants are expensive, if you know someone who is an accountant get them to have a quick look at it for you.

    If not the Citizen's Advice Bureau should be able to give you a bit of advice on this and then following that you can pay for a tax accountant if required.
  8. All good advice. Who's to say that if they made a cockup once, they haven't made a fuckup this time.
  9. The same happen to me, two years ago. I got a demand for £600.
    Got onto the phone to my accountant and she said that it came about
    because they changed my tax code on my pension.

    So was able to pay it back by a increase on my Tax Code for the following
    Fiscal Year.
  10. chieftiff

    chieftiff War Hero Moderator

    Hmm, something strange is going on as this is happening to almost everybody I know who collects a service pension.

    I am expecting the same notice on the basis that I am taxed at BR for my pension when I should be taxed at D0(40%) and I've told them so, they disagreed when I contacted them but they are wrong so I'm just waiting for someone competent to take over my tax desk and realise I do owe them money, lets hope it doesn't happen for a couple more years - you'll understand why I say that when you read on. My boss has just had a notice for the same reason (ex RAF) despite submitting a tax return for the last 3 years and one of my Project Managers who collects a military pension has also received one.

    Fortunately the taxman can be held to account under a provision referred to as EAS A19, if you have supplied them with all the information that should have enabled them to calculate and collect your tax accurately and they chose not to use it within 12 months following the year in which the tax is payable then they can waiver the tax collection (and usually will as they have little choice). Challenge it using the information at the link below, do not under any circumstances accept responsibility for not informing them. You will have to pay any tax owed for the last tax year and this year but they can waive the tax for previous years if you can prove you supplied them with all necessary information and they chose not to use it, their inability to communicate in house between departments is legendary. HM Revenue & Customs: HMRC delays in using information
    Last edited: Jan 19, 2011
  11. Seaweed

    Seaweed War Hero Book Reviewer

    Definitely go for Extra-Statutory Concession A19, stating clearly that the underpayment is entirely the fault of HMRC as HMRC had full information on your income and failed to act on it in a reasonable time. Also plead hardship if the repayment of such a large sum is insisted on.

    HMRC tax demands: how to challenge your bill - Telegraph

    shows a sample letter. If HMRC then won't play, go to your MP.
  12. Just had a £450 rebate and cheque for tax overpaid 2008-9 2009-10 as a Dept self assessment adjustment.
    I think it was part of the screw up they made when the 10% rate was abolished then reinstated then made 20% overall.
    As mentioned all the details are at hand by HMRC and they tell the Paymaster to adjust for annual tax payment amount to be deducted .
    from RN pension at source.

  13. I have had a tax calculation telling me that I owe them £5500, £2750 for 2 years. I must admit I havent paid much attention to my P60 or what my tax codes were I just assumed (wrongly it would aqppear) that the tax man was taking the right tax as both my pension and wages are PAYE.
    My question is what counts as " full information " is the fact that my pension and wages are PAYE enough or was it my responsibilty to inform the tax man that I had a pension and a wage. Does any one know?
    I am overseas worjing until after easter but I intend to write a stalling letter to the taxman and see an accountant when I get back - maybe I can offset the expense against next years taxes!!!!
  14. Well, I did contact them ...... as per usual with "Government Agencies" - no reply !!

    Then yesterday, I receive yet another claim for underpayment of taxes, now alleging that I owe even more ........ because they say that I was in "two employments at the same time" ????? Phugg knows how they work that one out, I already do 12 hour shifts - they must think I don't sleep/eat/rest or something ?? ......Grrrr!!

    Suiffice it to say that a very polite (but discreetly sarky) letter has gone off to whoever deals with my area.

    Anyone else noticed that the Navy pension is dealt with in Scotland, and the Taxes in Wales ??
  15. I worked overseas a few years ago (KSA), and the rule was that if you did not spend more than 60 days in the UK, you were not subject to UK taxes.
    Have you exceeeded this ruling - of course, knowing the money grabbing barstewards (a certain one-eyed North of the Border man) in the last administration, they may have changed the rules somewhat without telling anyone !!

  16. And it's paid by a company in Crawley, Sussex!!!

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