Willo53 - Tax Underpayment

[Willo53]

Hi All,

 

Rather unexpectedly and poorly timed I received a £2,500 tax demand from Inland Rev at the beginning of December. The tax years in question seem to be 2008/09 and 2009/10.

 

Now I did have two jobs for this period and finished my part time (2nd job) in August 2010. The issue I have is that I have always instructed my employers that I have two jobs and as far as I believed this information should have been provided to the tax office. I know that the Inland Revenue have been widely known to have botched the data on the system and their data is unreliable.

 

I am in a poor financial situation at present and there is no way I have the spare cash to pay it. I would really appreciate some advice on my below questions:

 

What should be first official response to the Inland Reveneue in that I want to dispute the underpayment?

 

What are the chances that I will be able to get them to wipe the payment completely?

 

If a payment plan has to be agreed whats the lowest they will agree to?

 

It seems completely unfair that they can just drop £2500 bill on my doorsteps - what actual rights do I have to defend against this?

 

Apologies if the questiosn may appear quite basic, but I am literally coming into this with very minimunal knowledge and a headstart with advice from erudiate members would be warmly appreciated.

 

Best

 

W

[Wackyo]

The same thing happened to me about 2 years ago - I received a payment for Tax I'd over paid only to be told a year later that they had miscalculated & that I had actually underpaid my tax for that year. They demanded the money in one payment.

 

I tried to make payment by CC which they don't accept, as they don't want people to get into debt, when I asked to pay in instalments I was told I should have had the money to pay as I knew they were investigating - it was a battle & I was on the phone to them for over an hour but eventually they agreed to instalments - I think I offered about £100 a month which they grudgingly accepted - but when I asked to pay on a certain date in the month close to pay day, which was a different date in the month that I made the first instalment I was met with more questions about how I could afford it this month but not be able to pay it on that date everymonth!

 

Good luck

[honeybee13]

Hello Willo. There is a Tax and Benefits forum here at CAG. You might consider posting a link to this thread or a summary of what you're asking onto the other forum. Please don't copy and paste what you wrote here, or we'll both be in trouble .

 

I hope you get some help.

 

My best, HB

[slick132]

Hi Willo,

 

I've moved your thread into the Benefits, Tax Credits forum for you.

 

You should read my reply on this thread which has similarities to your problem - http://www.consumeractiongroup.co.uk/forum/showthread.php?294614-Tax-demand-i.r.

 

Hope this helps.

 

8)