which was news to me as I have been paying PAYE tax all year. When I looked closely at the letter it turns out my employers have given them wrong figures and said that I earned nearly £40,000 last year (I wish!!) - (my earnings are no more than £28,000 tops)
I have phoned my salaries and wages dept and emailed them across the relevant info, but I am bricking it slightly that this will turn into a difficult mess.
HMRC were reasonably helpful, and said employers quite often makes mistakes like these
Anyone out there with happy stories of a similar problem that was easily resolved?
@topcat sorry - didn't explain it well - on the letter there are two figures, the first one of total earnings for £27,658 and then a second one of £12,000 - which is completely spurious as I didn't earn 12000 on top of my regular job.
The extra tax is after both have been added together.
I know it's a lot easier said than done, but don't worry about this. HMRC are really reasonable and not at all interested in taking tax that isn't owed. Even if you did owe it, you wouldn't have to pay it all in one go, it would be spread out over time. It'll be fine and they will 100% not make you fork over a big chunk of cash at any point.
Another vote for 'updating systems'. If your employer has done this, there are often two 'records' for each person at HMRC with different payroll ID numbers. Funny how the second amount is £12,000 - sounds like a 'dummy' salary of £1000 per month was put in to set up the record, and then not removed.
As you can see, you don't owe the tax - and your employer would agree. Up to the employer to assist where they can - but HMRC can be tricky about speaking to employers if they think it is an employee matter.
Sorry for the admin hassle you will have - but it is fixable with nothing owing.