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Employer PAYE error - big bill on its way, help!

3 replies

letmeflyfarawayfromhere · 19/09/2013 23:11

Hi I'm hoping someone out there with a bit of tax knowledge can help me, very stressed here Sad

DH worked at the same place (Company A) for a few years, last year it was bought out by a large company (B) and he was TUPE transferred across.

About six months later, he noticed that a new (lower) amount was going into his bank account every month, on querying this it seems that the Company B is now paying the correct amount, but for the first few months had not been deducting enough PAYE.

Company B never sent out any paper payslips but uses an online system which DH unfortunately hadn't been keeping as close an eye on as he could. The transfer/extra pay also coincided with other significant (unrelated) changes to our finances so the upshot is we didn't notice any extra money coming in. Company B say the mistake occurred because A didnt send DH's P45 over with the rest, apparently they did ask for it but didn't get it, didn't chase it up, and didn't ask DH for any details (but clearly knew his salary!)

We've been stressing and stressing about how and when we're going to repay tax but I've just spoken to a friend who says she had a similar issue and that the employer had to repay the tax, not her, as it was their error. Anyone know if this is right?!

OP posts:
VivaLeThrustBadger · 19/09/2013 23:18

My mum is a bit of an expert on this after a similar problem and she has always said its the employers responsibility to pay the shortfall if the mistake was theirs.

Her situation was compounded by the fact her shortfall was from a public sector pension cock up. The tax office hounded her for two years for the tax and she kept telling them to go back to the education pension provider and get the money from them.

In the end they agreed she didn't have to pay it, but it took a lot of letters.

prh47bridge · 20/09/2013 01:08

It actually depends on why the employer made the error but in your situation I think the employer will have to pay.

letmeflyfarawayfromhere · 20/09/2013 07:32

Ok, that sound hopeful, thanks guys.

I suppose the best thing to do is speak to HMRC first of all? (Rather than wait for them to notice and send out a big bill)

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