I need tax advice please!

taxnovice · Jan 16, 2009

I am a Consultant. I was TUPEd from Trust A to Trust B in April07. Tax Office messed up Tax Coding for 0708tax year and sent the info to Trust A. Trust B, who pay me, used lower rate tax code for all of 0708 tax year.
I am now doing tax returns for 0708 tax year and am left with big amount to be paid back, being tax not collected at source.
I spoke to tax office, they just said sorry, self assessment is unforgiving and you will have to pay by 31st Jan09.
I have now made amends with payroll in 0809 tax year, but do I have any recourse for the big bill I owe for 0708 tax year, considering really, the tax office and Trust B payroll were inefficient.
Please please help. thank you.

RAL · Jan 16, 2009

taxnovice said:
I am a Consultant. I was TUPEd from Trust A to Trust B in April07. Tax Office messed up Tax Coding for 0708tax year and sent the info to Trust A. Trust B, who pay me, used lower rate tax code for all of 0708 tax year.
I am now doing tax returns for 0708 tax year and am left with big amount to be paid back, being tax not collected at source.
I spoke to tax office, they just said sorry, self assessment is unforgiving and you will have to pay by 31st Jan09.
I have now made amends with payroll in 0809 tax year, but do I have any recourse for the big bill I owe for 0708 tax year, considering really, the tax office and Trust B payroll were inefficient.
Please please help. thank you.

If Trust B did not processed the P45 or submitted P46, then Tax Office would not know that you were working for Trust B.

I do not think you have any recourse for the big bill as end of the day it is individual responsibility to pay the tax.

dp0848 · Jan 16, 2009

I don't think you have any recourse against either Trust or HMRC as you've suffered no loss. Indeed if anything you have gained. Had Trust B operated the correct code then all taxes due would have been deducted at source and paid by the end of the 07/08 tax year. As the wrong code was operated this did not happen and HMRC have given you until 31/01/09 to settle the liability. In effect you've had an interest free loan from HMRC for the ten months.

David.

taxnovice · Jan 16, 2009

Thank you very much. I am not intending to skive from paying, just wondered whether there is any recourse in terms of timing as the amount involved is much more than usual.

Padma

DIY Accounting · Jan 17, 2009

taxnovice said:
Thank you very much. I am not intending to skive from paying, just wondered whether there is any recourse in terms of timing as the amount involved is much more than usual.

Padma

You might consider opening a debate with HMRC to see if since the underpayment was not your fault that they might recover the underpaid tax by adjusting your tax code for next year.
If they agree your repayment would effectively be spread over the next financial year

RAL · Jan 17, 2009

taxnovice said:
Thank you very much. I am not intending to skive from paying, just wondered whether there is any recourse in terms of timing as the amount involved is much more than usual.

Padma

Padma

Contact HMRC as Terry suggested, if you are still employed by Trust B, speak to HR Manager or senior manager in the Trust B, ask for interest free loan (There is no Benefit in Kind taxation for loan upto £5,000). If your employer is trust, then I am not sure that it may be possible to lend you money.

JGOffshore · Feb 21, 2009

Hi, contact me via my website http://jamesgreenandco.co.uk and I'll be happy to talk you through your options.

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I need tax advice please!

taxnovice

RAL

dp0848

taxnovice

DIY Accounting

RAL

JGOffshore

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