Recovery of PAYE underpayment - change of circumstances case of hardship

[hillbilly5]

Just wondered if anyone had any info or links which I could use.

 

My husband owes approx £2200 from previous years PAYE from when he worked from a previous employer (who has now gone bust) and they hadn't informed the tax office of these.

 

Hubby recently had a letter from HMRC saying that they were altering the coding from April 2012 which would mean that he will be paying an extra approx £200 per month to repay the underpaid amount.

 

That wouldn't have been a problem, except that in November he had a routine op which the surgeon botched leaving him with nerve damage and being unable to work at present. At present he is only being paid £81.60 per week SSP. I only work part time and get £101 per week. We get £8.29 per week tax credits (although we have been told that in April we can reapply due to our current circumstances.) We also get £134 per month child benefit. We have 2 dependant children. Obviously with hubby only getting £81.60 per week we can't afford the extra £200 tax at the moment.

 

Does anyone know where there are any links to template letters which we could send to appeal to HMRC on the grounds of hardship to delay repayment, or even write off the amount? Or does anyone know where we can get help.

 

Time is of the essence as we need to sort this asap before the tax year starts.

 

Thanking you in advance of your help.

[Gbarbm]

You can ask for a time to pay arrangement for up to 3 years on the grounds that repayment over 1 year will cause financial hardship.

Just write to HMRC quoting hubby's NI number, to the address on the letter/notice of coding that you've received. You say that hubby is receiving SSP, is that being paid by DWP or the employer?

Also, it appears that the underpayment may have been brought about by an employer error and I would certainly be stating that to HMRC

There is no template as such but if you want me to help you draft an appropriate letter then just give me a shout.

Kind regards

Gbarbm