HMRC tax debacle - anyone challenged an underpayment?

[theladylovescupcakes]

Thought we'd escaped a letter from the tax man saying we owed him money - unfortunately not. Unerpaid for year 2008-09, but overpaid 09-10, strangely, but still leaving an overall underpayment. I've seen info on moneysavingexpert.com about writing to HMRC challenging them under the "12 months from end of tax year" rule - has anyone done this successfully? We don't have complicated affairs, can't understand how they have cocked things up like this.

Are they asking for the money back in one hit or are they suggesting changing your tax code to recover it? There's a discrepancy in my employment benefits that they adjust for every year(long story) but, rather than trying to get it corrected, I simply submit a tax return in May/June and get things back to square one then. Do you complete a tax return?

Hi, don't complete a tax return now, although did until a couple of years ago (see any connection here?!) they plan to recover through the tax code, not a huge amount but would rather try and see if there's any way they might write it off by appealing.

anyone else?

This was on the Beeb this morning. There is a provision called A19 under which you can appeal. You have to show that you provided all the relevant information at the right time and had no reason to doubt the initial assessment.

Have a low at this website - they have sample letters: www.litrg.org.uk/News

We successfully challenged part of it on the basis that DH had not filed a tax return (as not requested to) and therefore had deductions that should have been taken into account. We argued the A19 provision (underpayments due to a mistake on the part of HMRC over 12 months should be written off) and they just ignored this with no explanation as to why it doesn't apply to our situation. I believe it does but if they apply it they will effectively cut the money they can recoup in half as everyone will challenge on this basis. Good luck. It did take a good 4 months to get any reply.

One interesting (??) thing that is not widely publicised is that if you are over £2000 threshold (that requires you pay in a lump sum rather than through adjustment of tax code), you have the option of paying the balance to bring you under the threshold and then paying the rest through your tax code.