Unpaid Income Tax

[essexmat]

Hi all

 

Nice letter in the post this morning from HMRC - Unpaid Income Tax to the tune of £86.00

 

They said they sent me a P800 but never got one so obviously I called HMRC to discuss with them (42 minutes waiting on the phone)

 

When I spoke to them I explained I was made redundant in Feb-13 and then started claiming JSA© and then JSA(i) and then moved to ESA in August 2014. The letter referred to period 5 April 2014 at which time I was not getting paid apart from benefits and also well under any threshold for tax.

 

The lady I spoke to was quite adamant it was MY responsibility to check tax even though at the time I had payments from DWP only and had never got any statement about tax owing etc - therefore I do not feel I am liable.

 

She asked for contact details and she is referring to someone else and said to not do anything until I am contacted. I have noted the conversation on the letter to keep track of what was discussed and am now awaiting a call.

 

Should I be liable for anything? My last employer obviously paid my tax on salary and since being redundant I have been on benefits and not privy to any tax details even though some benefits are taxable.

 

I don't think I should have to pay but will wait and see what happens. If I am liable which I think is a wrong decision £86.00 is a lot for me and I cannot afford it and would have to pay over 12 months but I am hoping it is a mistake.

 

Obviously I have not ignored this as any DWP letter or HMRC letter should not be ignored.

 

Any advice? Is this common?

 

Thanks

[Mr.P]

Just clarifying the timeline:

 

Made redundant Feb 2013

Claimed JSA/ESA from Feb 2013 to present.

HMRC demand for the period April 2013 to April 2014

 

If this is correct, then you have been in receipt of benefits for the entire period in question. I think a letter to HMRC asking exactly how they calculate this £86 underpayment and precisely what figures they are using as your taxable income. Would also be worth querying the tax code they have put you on and checking to make sure it is the correct one.

[essexmat]

Redundant FEB-13

JSA FEB-13 to AUG-15

ESA AUG-15-Present Day

 

The lady I spoke to said "I think this may be wrong" and is sending a new statement out to me and also getting someone to contact me. I know some benefits are taxable so I wonder if it is a cross between when I was made redundant and started claiminig JSA? Even if this is the case surely I am not responsible?

 

I will wait for additional paperwork and a phone call, and, if it is a case of me owing it (which will be a disgrace) they canhave it over 12 months but I don't think I should have to pay it at all.

[blondebubbles]

If you were made redundant in Feb 2013 then this has no impact on the 2013/14 tax year.

 

I assume you mean JSA to Aug 14 then ESA from Aug 14?

 

All JSA is taxable and ESA contributions based is taxable.

[essexmat]

Yes, sorry - ESA AUG-14 to present

[essexmat]

UPDATE:

 

Called them and they sent me (arrived next day) a full statement. Looks like I am liable as the crossover was when I ended employment and started claiming benefits. £86 is a lot for me so calling them tomorrow and going to arrange something - do you think I could pay over 12 months?

[neword]

I would call then up and explain your current situation and if you are happy to pay it then ask them for time or

a repayment plan, they would probably be happy to get the money from you even if it is through repayments.

[blondebubbles]

They do accept repayment plans but don't know if they'd accept it over 12 months for £86.

 

You can always ask though.

 

I would have suggested 8 months of £10 and one month of £6 but they may ask for your income and expenditure before deciding.

[essexmat]

UPDATE 2:

 

Called HMRC AGAIN tpday (waited 32 minutes to get through) Was told to contact DWP re statement of earnings - I done so but both HRC and DWP reps were about as useful and informative as a chocolate teapot. Gave up in the end and sent a letter recorded post to HMRC cc DWP with an outline of events in bullet form - ball is in their court now - not got all day to stay on phones trying to sort a mess out that no one helps with. No wonder this country is a mess.

[fletch70]

Mat

TBH if the PAYE system was working correctly there really shouldn't be any crossover however if your ex employer used the whole months tax code when you finished mid month that may account for it. The other possibility is benefits in kind as they always seem to work a year in arrears . A little over a year ago I had a request for £50 odd for income tax, I queried it, they sent me a statement and not heard anything since. To be fair to HMRC they are under immense pressure to collect the tax from the proletariat however as we all know the bourgeoisie get away with absolute murder

[essexmat]

Thanks - well, if it is my ex-employer they can sort ot out. Even after being made redundant in Feb-13 and signing on that would only be 2 months of benefit income and the statement clearly says income of £456 so nowhere near taxable. They will get the letter and can argue between them - personally I do not think I am liable but the ball is in their court now to sort it out.

[essexmat]

UPDATE - RESOLVED

 

Letter from HMRC this morning - their mistake, two JSA sources - recalculated with nothing owing.

[SabreSheep]

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