Inland Revenue letters asking for money back (IN the news)

[bargainhuntingbetty]

Is anyone else worried they will be hit by a HUGE tax bill before xmas????? I am worrying already and they have only just announced it.

So I am the only one worrying then.

Me too!

DH moved from a company car to a car allowance last year and I'm worried that he may have been affected as it seems to be if you have moved job, had financial benefits from job etc.

OTOH, more people seems to have taken money off them and are entitled to a rebate but it's a bit of a waiting game, isn't it.

Apparently the first batch of letters have been sent out and will arrive next Tuesday,however you might be one of the lucky ones that might have paid too much tax and be due a rebate.
Got the following from the BBC website,

"Discrepancies arise when the amounts deducted in tax and National Insurance by employers using the PAYE system do not match the information held on HMRC records.

This most often occurs when individuals change jobs, have more than one job at the same time, or because employers are using the wrong tax code.",

Apparently the PAYE system is struggling with modern times.

Both DH and I have been in the same job for a while now (more than a year) so maybe we should be ok???

I've heard that they intend to change tax codes to claw the money back over the year, rather than hit people with huge tax bills. Doesn't inspire confidence does it?

I think if it's their cock up, they should suck it up.

I'd imagine it will be done though your notice of coding so if you have overpaid they are likely to collect it during the year ended 5 April 2012 in 12 instalments.

I wonder if they will issue any more information re who is affected. Surely they cant have everyone sitting wondering if they are one of the one million ??

as tefal says, if you do owe money (& at them for getting things like this wrong) they will claim it on a monthly basis over the next tax year.

So it is a PITA but they won't expect anybody to cough up a huge amount upfront

expat, some people will have overpaid & be due a rebate. Should that also not be repaid on a "their cock-up" basis?

can't have it both ways!

Not too worried as we fill in returns each year and I check pay slips to see that the coding is correct.

This is supposed to apply only to people who pay tax via PAYE, not to those who self-assess, so you should be OK anyway, scaryteacher.

Am still worried tho/.

I found this story on line if you look at the date its a year a go that this accounts firm raised this with the Tax offices.

www.ion.icaew.com/TaxFaculty/18415

It appears one thing after another with our government, and I think this one are using any excuse to claim back cash but then trying to blame the last one.

It does say on the link a suggestion of suing them, be interesting if everyone who gets a letter follows their advice?

I am worried about this...I think if your circs change then an error could occur. I was on maternity leave and have lost my car allowance over the past 18 months.

Was listening to Paul Lewis on the radio this afternoon and his advice was to appeal any payment notice. Thinks you would have a good chance of winning too. "Link http://www.bbc.co.uk/news/uk-11187333 here"

"Sorry here"

I started a new Job in June 2009 and was on an emergency tax code until the end of the financial year.
Do you think this means I will owe money?????? Very worried!!!

on emergency tax you normally overpay, as there's no earned income allowance & every £ is taxed.

If that wasn't ever adjusted by your employer during the 09-10 tax year you should be due a rebate (but you'll probably have to claim it back, I don't think 09-10 is one of the years in question)

Anyone had letters through today??? Do you know if you can phonea nd see if you are one of the unlucky ones?

It's worth saying again here - anything from the HMRC will come through the post - if you get an email about a rebate or tax owed, it is a scam, looking for your bank account details to clear out your account. Do not reply, just delete it.

Apparently people have already been scammed this way (according to the Times today).

That is appauling, why would people do that. Maybe you should post this info as a seperate warning.

'This is supposed to apply only to people who pay tax via PAYE, not to those who self-assess, so you should be OK anyway, scaryteacher'

Dh does both Ponders - and has done for years as is higher rate.

Yes, but if you do both then they get accurate figures from you each year & adjust accordingly - my DH used to do this too, generally got a rebate, sometimes had to pay a bit more the next year (based on changes to company car etc)

Correction: This is supposed to apply only to people who pay tax via PAYE and do not also self-assess

Or not, as the PAYE is accurate, the interest non-existant (and savings in my name, so no tax due) and make a paper loss on the rental income.

Or not what???