Wife got one of those letters, another adjustment apparently.
Anyhow, on reading the statement of what she owed, I noticed that they have her pay at £2200 more than she earned in the year they say she owes tax for.
She stopped work at the end of Feb 08 and didnt start again until the middle of April 08, her P45 says she had earnt £9900 until then, but on this statement they sent us it puts her total income at £12,100 which is untrue, she didnt work again that tax year and she only earnt the £9900.
I cant quite work out why they have it that she earnt any more money because her bank statements clearly show that she didnt, nor did she receive any backpay.
Any clues?
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She needs this:
en.wikipedia.org/wiki/P60
Should receive that from her employers each year.
The 'taxman' uses a copy of this to determine tax as far as I know so she'll need to check this form.
Last edited by: Lygonos on Thu 27 Oct 11 at 21:29
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Oddly Stu we had a very similar experience. Figure used by HMRC was about £1k more than the sum on her last payslip from the single employer she's worked for al year.
In her case light dawned when the taxman responded to our declaration of some income from freelance work. Turned out that the last month's salary from a job she left at Easter 2010 was April and not, as we had assumed, March so fell into 10/11 AND NOT 09/10.
Call or write to HMRC and ask them for a breakdown.
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Yeah we will definately call, unfortunately she never received her P60, not sure why although at the time they are issued, she wasnt employed so it may have been an oversight, I presume by her previous employer, she has every other one.
I know for sure that her last pay was at the end of Feb 08, well before the Apr 5th cut off.
Also the amount they reckon she earned in what was a 7 week period is about £100 a week more than she ever earned in that job, so its not as if they just projected her earnings forward either.
The tax amount on her P45 DOES match what they have on the statement sent through though, so Im rather perplexed by it. Ive also checked her start dates for two jobs she started in the middle of April 08 and she definately didnt start either job before Apr 5th.
The worrying thing for me is where on earth their figure has come from.
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>> I know for sure that her last pay was at the end of Feb 08,
>> well before the Apr 5th cut off.
If she was not employed by the company as at 5th April, they would not have to issue her with a P60; they only need to be issued to employees still on the payroll.
The P45 is the relevant document for that tax year.
Last edited by: VxFan on Fri 28 Oct 11 at 10:38
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I had one of these because of a "difficult" year on 09/10 - I phoned up took the ten different tax codings I'd had for that and the following year, I went in owing them 885 quid and walked out owing 46 quid.Took fifteen minutes.
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I have found HMRC very helpful. All my income is taxed at source except my State pension so I expect to pay 20% on about £5200 and the bill is taken by adjusting the tax code on other income. This year I got a bill for over £600 which knew wasn't right. On the phone to the Leicester office and it was quickly established that I had made a major mathematical boo-boo on my return. Send me copies of your P45s and I'll sort it said the man. 2 weeks later I got a revised code and a month after that £600 bill reduced to £0 and a £180 refund. They are human and they do answer the phone - a result.
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I found them very good face to face.
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Well a call to HMRC has left more questions than answers really.
They say she had two employers at the time, but looking at bank statements and wage slips, even if she was employed by someone else by 5th Apr, it was only just and her first wage packet for that month was just £40 as she only did one training day before starting properly in early May.
The difference between £9.9k and £12.1k isnt going to go away with £40.
They are sending her all details they have on her earnings for the period though, so hopefully it will shed some light on it, cant wait, as the misses said, wheres her two grand!
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So it's a question of waiting and seeing what the details show?
We were lucky in that in our case HMRC named the specific school at which Mrs b had been teaching so the Eureka moment was not reallt too involved.
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Having just turned 65 & getting my OA Pension I was due new tax codes as the OAP is taxable. These duly arrived but the code number included a full years Pension deduction from the Personal Allowance (Tax Free bit!) whilst I will get 6 months worth at most.
Phoned them up, got thru in 10/15 mins and explained my issue - they checked and said it was correct and only 1/12th of the annual amount is taken each month and a letter explaining the coding and the deductions would come to me in a few weeks..............
DOH !!
Surely the explanation should come with the new notice of coding.................Carts and Horses come to mind.
That said the girl on the phone knew the ropes and it only took 2/3 mins talking.........pity the queues were so long - maybe a lot of them had the same sort of query!
Last edited by: Falkirk Bairn on Fri 28 Oct 11 at 11:44
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Update, we have heard back from HMRC. Curious.
For 2007-2008 tax year, which I thought ended 5th Apr 2008, they are saying all her earnings between 4th Apr 2008 and 8th Aug 2008 are included in that tax year according to the records they sent.
Id have thought they would fall in 2008/09 as she didnt even get paid for that job until the end of Apr 2008 in the first instance.
Am I missing something?
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What sort of work was she doing? I believe in some cases the tax point is the invoice date. Usually more relevant to the self employed. The Bar used to moan greatly about being taxed on fee notes that were still awaiting payment.
Last edited by: Bromptonaut on Sat 5 Nov 11 at 12:14
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Just for a well known retail company working 3 days a week on contract.
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Closer inspection reveals that HMRC are morons, the mistake is in their own workings.
In 2008/09 she didnt pay tax on the £2100 from a 2nd job so this year has been paying the tax back through her tax code. I checked her 08/09 P60 and the £2100 was on there as a second job.
Now some 'genius' has decided that same £2100 should also be taxed in the 2007/08 tax year so she is essentially being taxed twice on the same bit of money.
Since when was all earnings over £10k taxed at 40%?! Atleast I know I can see what has happened, but its lucky I took the time to check, now heres hoping it can be resolved.
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Underpaid tax - Lygonos
