PDA

View Full Version : Tax!!!



Liz
25-Nov-10, 23:49
Has anyone else had one of these horrible letters from the tax office to say you have underpaid?

My sister got one today which says she owes them £486.40!!:roll:
Don't know how this can be as she's always completed tax forms correctly.

They will collect this through her tax code which means she will be paying about an extra tenner a week from an already paltry wage!![evil]

She'll be phoning them tomorrow to ask who made the mistake etc.

unicorn
25-Nov-10, 23:51
ahh thats a rotten pre christmas gift. I thought it was being written off as it was the tax offices error and there are so many people owing? I could be wrong though but I thought I heard that the other day.

Liz
25-Nov-10, 23:56
I think they were writing it off if under a certain amount? Can't remember what that is but £300 comes to mind.

If that is the case surely they should be deducting this amount from any amount which is owed?

theone
26-Nov-10, 00:05
There was a lot about this on the news a month or so ago. It doesn't matter who's "fault" it was, you owe what you owe.

I think most people who've had the letter have changed jobs in the last few years and there was a mixup with their tax free allowance.

A guy I work with got a demand for £8500.

Liz
26-Nov-10, 00:11
You're not quite right there theone as I've spoken to a couple of people who got these demands and it turned out that they were owed tax!!
One person got a demand for £1,500 and after checking it was found they owed her £650!!

My sister has been with the same employer for many years and has always completed the tax returns with the correct info so can't see why she would have underpaid.

theone
26-Nov-10, 00:21
Sorry Liz, I wasn't suggesting not checking if they're right, just that if it ends up that tax is owed then it will have to be paid, regardless of who caused the mixup.

I imagine if your sister has been in the same job for years she might be okay. More complicated affairs such as capital gains from shares etc might change that though. The fact that she has had to complete tax return forms makes me think she might be in a more complicated situation.

On a positive note, I managed to claim back a couple of grand from Mr Taxman as I was only getting basic tax relief on my pension payments instead of the 40% I was due. They've now raised my tax free allowance to bring that into consideration.

Liz
26-Nov-10, 00:33
That's okay theone and understand what you mean.

She'll be phoning them tomorrow so here's hoping she'll be one of the lucky ones and find out they made a mistake and that they owe her instead although she'd be happy with just not owing them!

Well done on getting money back from them!

I'm afraid the system leaves a lot to be desired!:roll:

Bazeye
26-Nov-10, 01:33
The joys of PAYE, and being in the same job for 5 years.

Garnet
26-Nov-10, 12:28
I too have been hit with a rather large demand and I also cannot understand why/how this happened appart from the fact that the pay dept constantly made mistakes in actual pay. I have written to them (tax)weeks ago but so far I've heard nothing so I'm not holding my breath and as mentioned 'nice christmas prezzy' as that's bound to be when they get back to me. [disgust]

Liz
26-Nov-10, 13:51
Well I phoned the tax office on my sister's behalf and it turns out they didn't apply the correct tax code for a lump sum pension(which was only about £2000) she received hence the underpayment.

It will be collected at the rate of £10 per week for a year from April 2011.

Don't think there's much she can do![evil]

Garnet
26-Nov-10, 15:18
AAAAAAAArrrrrrrrrgggggggggg. that has cheered me up no end, bgr,bgr,bgr, it's typical I never get away with anything(:roll:) £10 a week eh. Oh well out with the begging bowl, wasn't celebrating christmas anyway...snif, snif, snif, snif.....



whaaaaaaaaaaa! [disgust].

Liz
26-Nov-10, 20:42
Aye it's enough to make you swear or peep Garnet!:lol:

I've just sent them a letter appealing under ESC A19 as they had all the info re the lump sum so should have acted on it earlier.

Worth a try!:roll:

Hopefully, you will get a nice surprise when they eventually reply to you. At least we have until April 2011 to get it sorted out.:confused

Garnet
27-Nov-10, 14:59
Thanks Liz, I'll look into that, well I would do if I knew exactly where I should look..what tax office, the one who sent the letter or East Kilbride, I'll just try both I think! G :confused.

Liz
27-Nov-10, 15:17
I found this which you might find helpful. http://www.taxadvicenetwork.co.uk/content.asp?PageID=141&ArticleID=668&ma=1 They don't seem to give us much hope of getting the underpayment written off though.:roll:

Still, as I said, worth a try. Good luck!

Garnet
27-Nov-10, 16:39
Again thanks, Liz I'm off to have a read / study. :D.

Liz
28-Nov-10, 14:31
Some more reading for you Garnet. http://www.litrg.org.uk/

Wish I'd read this before I sent off my letter.:confused

ArcaneWilbur
28-Nov-10, 15:34
I'm in the same situation mine is from 2008 and at the time I thought my tax was low so I phoned them to check and they said it was ok then I got a letter in saying I owe over £500 last month!!! I think whats worse is that i rang and they said it was fine and when I phoned them about the Letter they had a record of my calll from 2008 saying that I was querying my tax code

Rant Over:(

Liz
28-Nov-10, 15:36
I'm in the same situation mine is from 2008 and at the time I thought my tax was low so I phoned them to check and they said it was ok then I got a letter in saying I owe over £500 last month!!! I think whats worse is that i rang and they said it was fine and when I phoned them about the Letter they had a record of my calll from 2008 saying that I was querying my tax code

Rant Over:(

You have a good chance of getting them to write off this amount under ESC A19.
Worth a try.:D

Garnet
28-Nov-10, 16:55
Who ever said 'you need a Philadelphia Lawyer' obviously knew a thing or two!!!! I sure could do with one, once again Liz thank-you very much, I think I'll get OH to decipher it all for me. G. :roll: So I'm off to look into ESC A19 fingers crossed.