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      04-20-2008, 05:00 AM   #1
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Inland Revenue - Underpayment

I know we have some accountants on the forum. If any of you have expertise in PAYE and general tax matters I'd be really grateful for some informal advice.

I've just been sent a statement for 04/05 and 05/06 which indicates substantial underpayments during those tax years.

If anyone can help me with Extra Statutory Concession A19 and the employers liability for shortfalls in PAYE (as opposed the the employees) please let me know ASAP.

Thanks all !
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      04-20-2008, 09:48 AM   #2
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ulp.... good luck NFS, keep us informed :/

SJ
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      04-20-2008, 10:17 AM   #3
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Originally Posted by Serjames View Post
ulp.... good luck NFS, keep us informed :/

SJ
Thanks James .. unfortunately my previous employer had idiots running the payroll and they seem to have deducted too little tax over an 18 month period.

The underpayment is a big enough number to significantly dent my savings and any thought of a second car is on hold right now.
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      04-20-2008, 10:56 AM   #4
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bugger me.. There MUST be some sort of onus on the employer to check this ?

I can't believe you can just get lumbered with it. seems grossly unfair...

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      04-20-2008, 12:15 PM   #5
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needforspeed, sorry I am not an expert in this area. You are paye so I assume you have got your paperwork out but a bit stumpted. If you have a look at this website it can give you a 'basic' indicator of the correct national insurance and tax deductions. As you can see on the right hand side half way down you can plug in the years you are reviewing. Just remember this is basic and will not include benifits like cars, health, etc but it will give you a starting point as a reference to see if it looks like you have underpaid.

http://www.listentotaxman.com/

Have a look with this and see if it gives an indicator if they have a claim.
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      04-20-2008, 02:22 PM   #6
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needforspeed, sorry I am not an expert in this area. You are paye so I assume you have got your paperwork out but a bit stumpted. If you have a look at this website it can give you a 'basic' indicator of the correct national insurance and tax deductions. As you can see on the right hand side half way down you can plug in the years you are reviewing. Just remember this is basic and will not include benifits like cars, health, etc but it will give you a starting point as a reference to see if it looks like you have underpaid.

http://www.listentotaxman.com/

Have a look with this and see if it gives an indicator if they have a claim.
Thanks Gibbo. It's a bit more complex than that - I've sent you a PM to explain.

Unfortunately, I have underpaid, but it was not my fault and the revenue have allowed the problem to persist, making it much worse than necessary.

I think I have a strong argument to reduce my liability, but need some good advice.
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      04-20-2008, 03:06 PM   #7
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Did you do a tax return?
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      04-20-2008, 04:35 PM   #8
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Did you do a tax return?
No. The underpayment occured because my previous employer deducted to little under PAYE.

HMRC wrote to me in 2004 advising that they would no longer be asking me to carry out self assessment. I have asked them to allow me to self assess on 5 or 6 occasions since and they have always refused.

Kind of ironic that I now find out that they have not assessed my tax for 2 years either.
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      04-20-2008, 06:43 PM   #9
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thats wank!!!

I would be screwing the payrolls miswah for that fuc up!

happened to my Miswah's father before!
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      04-20-2008, 06:57 PM   #10
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If there was a payment shortfall, and you received the pay that should have gone to them, they'll want it.

They might do a no interest deal if your lucky. I've just had to serve them 5k for the same reason from 2006

There is no common sense applied at all, they are robots, invisible ones, so they take pleasure in winding you up, because they know you can't give them a clump.

If on the other hand the previous employer stopped the tax, and kept it, you have recourse. Apart from them paying it, you can drive down there, and headbutt the div that has given you the agg
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      04-20-2008, 08:07 PM   #11
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Roofay, where were you sat? also your up late mate?
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      04-21-2008, 01:37 AM   #12
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Originally Posted by roofer View Post
If on the other hand the previous employer stopped the tax, and kept it, you have recourse. Apart from them paying it, you can drive down there, and headbutt the div that has given you the agg
This is supposed to be the revenues first assumption.
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      04-21-2008, 03:33 AM   #13
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Quote:
Originally Posted by needforspeed View Post
No. The underpayment occured because my previous employer deducted to little under PAYE.

HMRC wrote to me in 2004 advising that they would no longer be asking me to carry out self assessment. I have asked them to allow me to self assess on 5 or 6 occasions since and they have always refused.

Kind of ironic that I now find out that they have not assessed my tax for 2 years either.
This might be useful to you, especially over any penalty interest they might want to charge you. If you can demonstrate, in writing, that you asked for self assessment, but they refused, then it is impossible for you to advise the Inland Revenue what your total income is for the year and therefore the tax you need to pay.
Around me there are a number of lawyers who offer a £50 initial consultation fee. I think it would be worth your while gathering all your documents together and seek out a lawyer that is offering the same deal.
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      04-21-2008, 05:43 AM   #14
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I'm in the same boat, but it's the IR's tax coding thats at blame.

Changed back from a personal car to a co. car last August. Got a new tax code the month after.

They now seem to think it was the wrong code and that i owe £830 from the last tax year!!!!!

Am sure it's wrong, but they won't budge until i've they get my year end figures from my co and P11D.

Muppets!!
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      04-21-2008, 07:18 AM   #15
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A true shitter from the IR (again). NFS hope it's not too painful. Good luck
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      04-21-2008, 01:48 PM   #16
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It's a comfort of sorts to know that it isn't just the US Infernal Revenue (dis-)Service that screws people around with regards to taxes. Sorry to hear of your woes, NFS & bells.
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      04-21-2008, 03:38 PM   #17
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Quote:
Originally Posted by needforspeed View Post
HMRC wrote to me in 2004 advising that they would no longer be asking me to carry out self assessment. I have asked them to allow me to self assess on 5 or 6 occasions since and they have always refused.

Kind of ironic that I now find out that they have not assessed my tax for 2 years either.
NFS, commiserations.

As an aside, I've had similar letters; basically saying I am no longer required to complete tax returns so they won't be sending them any more. I knew this was bobbins as I always have a couple of hundred quid due either to / from the taxman each year, even though I'm on PAYE.

So rather than try and argue with them, I just signed up for their online service. As far as I know anyone can sign up and submit a tax return, even if they've told you they don't want one!
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      04-21-2008, 05:01 PM   #18
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Originally Posted by dxb335d View Post
Roofay, where were you sat? also your up late mate?

Sat?

Boy wasn't well, Dad got vomit patrol
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      04-22-2008, 01:52 AM   #19
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Quote:
Originally Posted by Alex1974 View Post
NFS, commiserations.

As an aside, I've had similar letters; basically saying I am no longer required to complete tax returns so they won't be sending them any more. I knew this was bobbins as I always have a couple of hundred quid due either to / from the taxman each year, even though I'm on PAYE.

So rather than try and argue with them, I just signed up for their online service. As far as I know anyone can sign up and submit a tax return, even if they've told you they don't want one!
I used to submit mine online. Never considered trying to complete one without asking them.

I'd advise anyone else who has been removed from self assessment to ask for a tax return each year in writing. That way you have a record that you were actively trying to sort out your tax affairs.

Also .. don't assume that because you no longer self assess the revenue are still checking your tax themselves. I think this is where my problem began as it's almost as if the self assessment guys put my file away and no-one else picked it up for 2 years.
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