I apologise for the longwinded explanation below but thought Id be as thorough as possible. Any help or advice you can give would be much appreciated.
I left the RAF on 15/11/2001. RAF pension started 16/11/2001. Temp driving job 12/2001 until 04/2002 taxed at BR. Full time employment 04/2002 until 05/2005. Changed job 05/2005 until present. Since receiving my pension the tax code applied has always mirrored my main jobs code. So was effectively receiving the benefit of two sets of personal allowance.
I received a P800 dated 27/06/2010 for underpayment of tax for years 06/07, 07/08, 08/09/ and 09/10, to be paid by March 2011, after querying my main employment tax code that had carried a liability for an employers beneficial loan. This beneficial loan was paid off in 2001. Up to this point I had believed that my tax codes, for both pension and main employment were correct. And, that it was normal for a second income (pension) to have the same tax code as any other income (main employment).
I buried my head in the sand for a few months and then in late January 2011 received another letter from HMRC referring to the previous P800. This letter stated they had to receive full payment by March 2011. It included a hand completed paying in slip for the full amount (over £4000) and a freepost self-addressed envelope. I realised then that had to try to resolve this.
Firstly I tried phoning HMRC but got the standard answer that I was to pay the underpayment, no advice about ASC19 or complaints procedure, just pay up. Made an appointment to see an HMRC advisor in the local job centre, who while sympathetic, did not seem to have the knowledge to really help me. She did put me on to HMRC website and gave me some info from HMRCs computer records. This info did not mean a lot to me, and to be honest still doesnt, but I wrote it down for later research. Whilst in the office I had a telephone conversation with a tax technician who, unsurprisingly, rejected my initial ASC19 request for tax write off.
I then found your forum and duly sent off an ASC19 request on 9 February 2011 using one of the template letters, tailored to my circumstances as I saw them. HMRC replied to this request on 29 March 2011. They decided that I did meet the criteria for years 06/07, though no detailed explanation why I was eligible, and that years amount would be written off under ASC19 rules. However, I did not meet the criteria for the remaining years underpayment 2007-2010 which I would have to pay. Now I am unaware of any changes in my employment or pension circumstances in the years 2006 and 2007. So I am baffled why 2006/2007 years underpayment was written off under ASC19 but the following years not.
I followed this up on 4 April 2011 with a complaint letter, again using one of the template letters from here. The reply I received stated again that I was liable for the underpayment 2007-2010 because I received two sets of allowances. They also stated that a tax code of BR should have been operated by my pension provider as tax was already being deducted from my main employment. It seems that HMRC are blaming my pension provider but still want me to pay.
Im now awaiting a further P800 and details of payment options from HMRC but feel that Ive been caught in the middle of a large series of mistakes by two big organisations and being made to pay for their mistakes.
Now it seems to be that HMRC are being very arbitrary in their judgments about who and in what circumstances ASC19 applies. My circumstances have not changed in the last 9 years, I have received two sets of allowances, that I thought was correct, yet am eligible for ASC19 for 2006/07 but not any following years.
Is there any other form of redress I can take??
Again thanks for taking the time to read this and all comments welcome.
Carl
and in recent years have had a lot on my plate so maybe didnt pay as much attention as I could. They are for the years 2008/09 and 2009/2010. I wrote to the tax office saying that my circumstance hadnt changed and was shocked to receive this bill. They wrote back 2 months later telling me that I should have noticed my code, also that 2 personal allowances had been taken, hence I should pay back the underpayment. I called them as well and they say there was probably a mistake on my original P46 in that the box to say 'this is a second job' wasnt ticked. I have no memory of this. I guess my question would be can I find a copy of the original P46? If the box is ticked would I then have any case? The tax office say they will start taking the payments next month. Its sure going to be a tough year on NHS wages. Thanks for any help.
