MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Hi all,
Used to be self employed and moved into a perm role the last month of the 2010/2011 tax year. I passed my P45 to my new company and got taxed at source PAYE for my first month's wage, didn't really think about how much was taken off in tax at the time. I didn't realise I still had to declare that PAYE month on my tax return, and as a result, HMRC have investigated my return for that year and realised I got charged too little tax, and now they want £1000 which is the tax and the interest on the tax unpaid. 😥
I've spoken to them, but they are adamant that I need to pay up, won't even let me pay back through my tax code. I previously appealed a similar bill, but that was from a totally PAYE situation, and was their fault completely, and got it written off due to the excessive time they had to review it.
Do I have any grounds for an appeal on the same grounds? I can't help but have the feeling they have marked me somehow for investigation as I appealed the last one and won. Will appealing this just cause me even more aggro in the future?
Any advice would be much appreciated.
Sounds like its more than just the tax on the 1 months salary unless you were earning £5k a month and taxed at BR through PAYE unless it pushed you into a higher tax bracket. Get your accountant to review it or do it yourself. If its not due then you have nothing to pay but if its then stop messing about and pay it. The tax is 2 years in arrears so they won't allow it to be taken through your tax code.
It looks like they have simply recalculated your return with the missed PAYE earnings on it so unless you submitted your tax return for your self employment incorrectly too I don't know how you could appeal it. If you wanted to argue and you were found to be at fault through error or fraud they could then look back at your previous returns. I assume you have your records in good order going back to tax year 2007/08 if they wanted to investigate.