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bigduckontax, Accountant
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Hi my previous company has made me sign a mandate (as part

Customer Question

Hi my previous company has made me sign a mandate (as part of my contract net deal ) for 2012/13 tax year in which I thought was for double taxation, I paid them the double taxation very early with no complaints as per previous years. I received seafarers reduction for the year 12/13 and now my previous company is wanting more money (full refund of tax they claim is theirs)
Is this mandate legal ? And can they touch my seafarers refund? I thought it was my personal taxes and this seems like a very grey area.
They have not threatened legal action but I'd like to know where I stand legally
Your thoughts
Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hi, Kennny, a couple of questions so I can get going on your conundrum.
Firstly was was the mandate for exactly?
What was the double taxation to which you refer?
Customer: replied 2 years ago.
Hi Keith
1. I was on a net deal salary, the mandate says that should I receive any uk tax refund and that I must pay this to my ex employer.
2. Double taxation is because I was working in Norway and living in uk therefore my ex employer paid both country taxes, and in previous years they received the double taxation refund from uk tax authorities. I had no complaints about this.
Now because I myself found out that I qualified for seafarers deduction in uk. I received more of a refund in addition to the double taxation mentioned and now my ex employer wants this refund too.
I don't know if this mandate is legal but seems to me like they are trying to be opportunistic in trying to receive this seafarers tax refund.
Another thing you might find interesting is that if I stayed with my ex employers accountancy firm they would have only received the double taxation as per previous years. And never could apply for sea farers so why do they want this refund?
Looking forward to your reply
Expert:  bigduckontax replied 2 years ago.
As the mandate was to cover the matter of double taxation paid by your employer in both countries it appears, on the face of it, to be equitable as it enables them to to be reimbursed for a double deduction.
The Seafarers Allowance is quite a different kettle of fish and I submit a personal matter between you and HMRC. I would suggest that your ex employer is, as you surmise, being opportunistic and be told politely to take a running jump. Alternatively merely decline to respond to their accountancy firm.
Customer: replied 2 years ago.
Thanks Keith
I agree with what you say, my only concern is that it says in the mandate. " any tax refund" double taxation fair enough, but seafarers is still technically a uk refund. Even although my ex employers accountancy firm would never have dreamed of going for seafarers on my behalf.
FYI the letter requesting more money was from my ex employer not their accountant firm.
If I ignore them, can the go to legal team? In your opinion are they hoping I just pay? But can really do anything? As mentioned I have already paid the double taxation.
Expert:  bigduckontax replied 2 years ago.

My opinion is that they are on a hiding to nothing; it's a try on. It would be akin to their pocketing a tax refund were your tax code number revised upwards and you entitled to a rebate through the PAYE system. I would simply ignore your ex employers demands, they are just hoping you will pay up like a good little boy. In the unlikely event of their taking recovery action you will, of course, have to retain a solicitor.

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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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