BIG Tax underpayment!!! Argh!!

[Bluestar_Galaxy]

Hi everyone!

 

big problem apparently i owe the tax office around 3.5k!!! going back to 2007/8 ive almost always worked two jobs and it appears my tax codes were wrong....silly me i never bothered to check!!

 

first question other than flat rate expences of around £60, are there any other allowances i can claim??

 

i started gettin these demands in november, unfortunatly at the same time I lost one of my jobs, had to move house and obvs had xmas and new years comeing up.....settled in the new place and have a new job as well.....not sure what to do now? need to write to them as i have no idea how they worked these figues out and it was so long ago!!

 

a friend works at hmrc and said they might code it out if i can claim hardship....ths is the way i wanted to do it in the first place, but they tried to take it as BR almost missed my rent coz of that, ive also heard that there is a way to write off some of the amount owed?? any help and advice much appreciated!!!

[honeybee13]

Hello there.

 

Do you have letter or printout that tells you how the shortfall has arisen please?

 

It sounds as if you might think it's right.

 

My best, HB

[Bluestar_Galaxy]

it might be....but i dont have the info after moving house, i'll have to write to them and get copys of what they have sent, some of them seem quite how tho for the sal i was on!! basically i had the same tax code for both jobs.......but im assuming since i was paying tax at both jobs they should have known the code was wrong?! x

[Gbarbm]

Hi

Sounds as if you had two sets of allowances against each of your two jobs.

Normally, every individual between 16 - 65 is entitled to a tax allowance.

The allowance is normally utilised against the main job with the subsidiary employment being taxed at basic rate.

It seems odd that this was not picked up sooner by HMRC

Were you issued with a P60 for both of your jobs? A copy of this would have been submitted to the tax office by your employer, so I would be inclined to suggest that HMRC have failed to make proper and timely use of the information with which they were supplied and that being the case, they should remit the underpayment

[Bluestar_Galaxy]

thanks for the info!! how do I go about this? do I just writ and point out the p60 thing? thanks xx

[Gbarbm]

Yes. Put the following in your letter too:-

 

 

If you think that HM Revenue & Customs (HMRC) should have already collected the tax due in your Tax Calculation (P800) because the information had already been provided to it and HMRC have failed or delayed to use this information, then in some limited circumstances HMRC may agree not to collect it.

An 'Extra Statutory Concession' (ESC A19) allows HMRC to do this and it only applies to individual taxpayers who owe Income Tax and Capital Gains Tax. It does not apply in any other circumstances where amounts owing to HMRC are in dispute.

The circumstances are that HMRC should have used the information provided within 12 months after the end of the tax year in which it is received to notify the taxpayer of any arrears.