Ex-employer filing incorrect payroll benefits with HMRC

[JonBart]

Hi there - I'm looking for some advice as my issue has both Acas and Citizens advice telling me they don't know how I should proceed.

I resigned and finished my notice period with a prior employer (UK subsidiary of US multinational) 30th January 2018 in 2017-2018 financial year. I received my P45 in Feb 2018. When completing my tax returns for 2018-2019 I noted that my ex-employer had reported a taxable benefit (730 GBP) and earnings (approx 150 GBP) for 2018-2019 financial year.

I don't know what taxable benefit the sum refers to but, even if it is a genuine benefit I received, the fact that it has been declared in the wrong tax year has implications for reducing my personal allowance (I live in Scotland) meaning HMRC think I owe them money.

HMRC have stated I need to resolve this with my ex employer and they are unable to assist.

Local HR of my ex-employer are stumped and repeated requested to their payroll department (mysterious entity out of Dubai) have been ignored.

As I am no longer an employee the usual grievance procedure isn't open to me.

I am stumped as to how I can try and force my ex employer to acknowledge this issue, take it seriously and either correct the issue or at least issue a correction to put the benefits into the correct tax year.

Any ideas or advice would be very gratefully received.

 

[Mr D]

Solicitor?

 

[WaveJumper]

I am assuming the employer did not give you a copy of the P11D which would have covered benefits in kind. Just a thought is there not a copy of this on line if you login into your HMRC tax account?

From past experience the figure sounds like healthcare cover, could it be this?

 

[SteveHa]

Potential payment after leaving, and instalment based private medical insurance not aligned with the fiscal year?

Ask HMRC for a breakdown.

 

[Newchodge]

Did you actually receive any payment after you got your P45?
Did you have any contract with a third party for which you paid through payroll?
Do you have the previous year's P11d that shows benefits in kind?
Unless your ex-employer can explain what happened and why. I suggest your next step would be to issue a letter before action against the UK company, claiming the £150 odd they calim to have paid you and compensation for the tax payable on the taxable benefit you did not receive.

A letter like that, with a genuine threat of legal action, tends to concentrate the minds a bit.

 

[JonBart]

Many thanks for the responses and apologies for being unclear (unintentionally!) on the fact that I had received the balance of the 150 GBP from them after deductions but that the unexpected 730 GBP benefits were the challenge.

The 150 GBP earnings are from a couple of shares left in a third party share scheme that was a monthly deductible from my pay. Selling these to close the account was the source of the 150 GBP . I instructed the sale in March but didn't receive till April into following tax year. I received 104 GBP of this which I chalked up to deductions for tax/taxable benefits at the time.

The 730 GBP wasn't wasn't on my P45 and I wasn't issued a P11d for the year. Looking online all I can see if that my prior employer has declared taxable income of the full amount (730 +150 GBP) along with deductions for tax and national insurance. More interestingly I can see that the sum they have declared as a tax deduction is not showing in my SA32 calculation so I am now even more confused. When I spoke to HMRC they stated they couldn't see what this benefit was but I will call them again and see if they can clarify.

 

[WaveJumper]

lets us now how you get on best of luck

 

[JonBart]

Small update. My ex-employer ignored my solicitor's letter to action. Following that I wrote to the HMRC Technical Officer's for PAYE and Self Assessment requesting they investigate. After the first letter was signed for and then lost by HMRC a second letter was received and uploaded to my case notes. They have now written to my ex-employer asking them to 'review the information they hold'. I would recommend anyone else in the same position to skip the solicitors letter if they suspect it will be ignored and save the funds as HMRC's response was not impacted by the sending (or otherwise) of the letter from my solicitor.