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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My son has got a bill of £5.000 from the income tax people.

Resolved Question:

my son has got a bill of £5.000 from the income tax people. unawares to my son his firm havent been taking the right amount of income tax. he has to pay this by the end of the month.where does he stand
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Is your son employed as opposed to self-employed? If he is employed, has he received a P800 tax calculation? If so what tax year is it for? Can you tell me what he earned, how much tax was deducted and what his tax code was.
Customer: replied 1 year ago.
my son is a teacher he works at St Valentines hi school, I dont know what he earns as I dont live with him. I dont know whether he has received a p800 tax calculation only that he has to pay the £5,000 by the end of this month and he is very worried
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
Customer: replied 1 year ago.
Sadly I dont think there is anything he can do but pay up.He is being penalised for his firms wrong doing.
Expert:  TonyTax replied 1 year ago.
I'm drafting my answer. I will post it as soon as it is ready.
Customer: replied 1 year ago.
Sorry Tony I havent received your answer, what we can do cant stay on much longer was hoping he would be able to sleep tonight
Expert:  TonyTax replied 1 year ago.
Without the information I asked for, its pretty much impossible to say why the underpayment has occurred which might help me recommend a course of action. There could be any number of reasons. Your son blames his employer for deducting the wrong amount of tax. The amount oftax an employer deducts from an employee's pay is dictated by the tax code which is issued to the employer by HMRC for that employee. It is up the taxpayer to make sure that his or her tax code is correct and, if they don't know how to do that, to ask someone who does. There is also plenty of guidance on the internet. Most people check their car insurance quotes with a fine tooth comb but when it comes to tax codings, taxpayers have a blindspot in my experience. They seem to think that their coding must be correct. This, despite it being issued by one of the most disfunctional government departments there is. The bot***** *****ne is that, ultimately, a taxpayer is responsible for their own taxes, nobody else. If a P800 has been issued, then the figures should be checked against the P60 and the P11D if your son was in receipt ofany taxable employment benefits such as private medical treatment. If it is correct, then he needs to find outwhy he is underpaid so a call to the tax office will tell him what tax code he was on and what it should have been. There are notes on the P800 tax calculation here: https://www.gov.uk/tax-overpayments-and-underpayments http://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-should-i-do-if-i-receive-p800 There are, of course, situations where an employer doesn't operate PAYE correctly and your son might ask HMRC to look at that. There are some notes on employer PAYE errors here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366615/employer-errors-deduction-paye.pdf If the underpayment is for an old tax year,then there may be room for making a claim to relief under Extra Statutory Concession A19 which you can read about here: http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/943-extra-statutory-concession-a19 If there is nothing that can be done, then your son might call the Business Payment Support Service to try to get HMRC to agree to an instalment plan so that the tax can be paid over a period of time. The BPSS can be found here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/business-payment-support-service I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
Thank you so much I will pass this on to my son, but at the end of the day you expect your firm to take the right payment while he is teaching children
Expert:  TonyTax replied 1 year ago.
Thanks for accepting my answer.

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