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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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My employer pays my salary via a UK accountancy firm. This

Customer Question

My employer pays my salary via a UK accountancy firm. This accountancy firm used the basic rate emergency tax code for my payrol for two years and now i have a 16k tax bill form HMRC. Can i claim against the accountancy firm for compensation to help pay this bill. My employer has offered me an interest free loan in the meantime. However i took out a mortgage on the strength of my take home salary which is now substantially reduced.
Submitted: 4 years ago.
Category: Law
Expert:  Alex J. replied 4 years ago.
Hi,

Thank you for your question and welcome to Just Answer.

I am afraid there is nothing you can do to recover this money, it is your responsibility to pay tax and ensure that you are on the correct tax code. I would take the interest free loan in order to stop yourself incurring any penalties.

Can you actually afford to pay the mortgage? Did you initially inform the accountancy firm what your tax code should be?

Kind regards

AJ

Customer: replied 4 years ago.

Hi AJ,


 


Does the accountancy firm who is appointed by my employer not have a duty of care to put me on the most reasonable emergency tax code? I am a higher rate tax payer so i would have not expected to be put on a 20% tax code.


 


They contend that i didn't provide a p45 or my NI number but irrespective of that they could see my salary and so should have used an appropriate higher rate code not a 20% code as they did.


 


Now with the salary reduction and the loan repayment i have lost about £800 per month so the mortgage is going to be very challenging.


 


thanks John

Expert:  Alex J. replied 4 years ago.
Hi,

Thank you.

Why did you not provide them with a P45? Was it impossible at the time?

When you received your first pay slip was it apparent you were paying too little tax?

Kind regards

AJ
Customer: replied 4 years ago.

Aj,


 


the reason is that i am hopeless with personal paperwork and i was setting up the business for my employer and naively assumed my interests would be looked after properly. I assumed hat emergency tax codes were the default position so if anything i would be paying too much.


 


I'm have never reviewed my payslips in any detail so again naivety has caught me out.


 


Kind regards


 


john

Expert:  Alex J. replied 4 years ago.
Hi,

Thank you.

How much of the mortgage would you need to pay to make the monthky payments manageable? £20k perhaps?

Kind regards

AJ