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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13919
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have recently been sent a p800 and a tax bill of £13947

Resolved Question:

I have recently been sent a p800 and a tax bill of £13947 for underpaid tax from 2012-2016.
My tax code for these years was BR.I don't understand how hmrc could have got it wrong 4 years running.Is there anything i can do to reduce the bill?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question- I am Sam and I am one of the UK tax experts here on Just Answer

May I ask

1) How many sources of income did you have from 2012 to 2016 and anapprox idea of the total income value for each year

2) Have you been awarded personal allowances at all

3) Have HMRC offered an explanation - usually on the notes section of the P800 calculation - if so whet was this

4) What was this source of income specifically (employment or pension or rental income etc)

Thanks

Sam

Customer: replied 1 year ago.
I have 2 sources of income 1 is my paye job and 1 is my armed forces medical discharge pension.Total income around £66000 per year.No personal allowances.Hmrc have sent me 7 different p800/tax bills within 10 days each with a different figure.I have spoken to them and they say the most recent is the amount i have to pay.there is no explanation in the notes section.
Thanks
Stuart
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response and the additional information

Then this is where the problem lies - as your combined annual income exceeds the basic rate threshold and you were onloy charged BR tax - some of it should have been charged at 40%

Im sure being sent numerous P800s is just confusing - if you would like me to look at the figures and make a true calculation for you then please advsie for each year for 2012 to 2016 your pension (and any tax deducted) and the PAYE source of income and the tax deducted.

Do you have any compnay benefits with your employment such as company car or medical benenfit etc

OR do you incur any expenses through the performance of your duties that are either reimbursed with your salary (so subject to tax) or not reimbursed

Are you under 65 ?

I can then calculate the position for you - and see if we can help you find some recourse.

I also would like to know that when you started employment did you

1) Hand then any P45 or did you fill in form P46 new starter - if you completed form P46 did you indicate that you had another source of income (as in the pension)

2) Discuss at any time with HMRC the fact you had a pension and employment and try and ensure that your tax position was accurate?

We may be able to see if HMRC or the employer were at fault to mitigate some of the tax

Thanks

Sam

Customer: replied 1 year ago.
Please find attached the latest bills.I do not have a company car.On previous bills it shows job seekers allowance however I have not claimed JSA.
Expert:  Sam replied 1 year ago.

Hi

Could you answer the questions please - then I can help you further.

I have taken a look at the link - they advise that an estimation of Job seekers allowance was made initially but they have treated this as NIL as they have re the company car position - so why they had these included in the first place I cannot state but the fact they have made both of these charges NIL has corrected that fact.

Thanks

Sam

Customer: replied 1 year ago.
I gave my employer a P45 and I have never spoken to hmrc in my life.
Expert:  Sam replied 1 year ago.

Hi

Then I am afraid this situation has arisen due to you not taking the right action - as you should have informed HMRC as soon as you found yourself in a position of employment and pension - so that HMRC could ensure any action re breach of the 20% rate band was dealt with at the time, so that you did not subsequently underpay in tax.

Based on what you advsie, I am afraid there are no mitigating circumstances we could argue to reduce your tax bill. It would seem the tax asked for its correct as an excess of approx £20K each year x a further 20% = £4000 per year x 4 years = £16,000

I am sorry as I can appreciate this is not what you wanted to hear - and if there was a way to mitigate some or all of it, I would advsie accordingly. Do let me know if I can assist further.

if however you have all that you need (be it though not what you would have liked to hear) then please do rate the level of service I have provided (or click accept) as this ensures that Just Answer credit me for my time

Thanks

Sam

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