Been told I have underpaid tax for several years ...

[BeaFuddled]

Got 4 letters from HMRC saying that I owe tax plus interest going back to 2019/20.

They start off thanking me for my completed tax return but I've never done a tax return as I'm employed and pay tax through PAYE.

They say I have received benefits in kind that I've not shown on the tax return (that I haven't done).

The only benefits in kind that I receive are health insurance and my professional fees are paid by my employer. Would they be on my P60?

The letters then claim that I've tried to claim over £10k a year against my tax for allowable expenses.

However, the only expenses I get are mileage when I'm doing site visits and subsistence. And these are paid direct to me by my employer. So I don't claim them against tax.

Anyone got any ideas?

I imagine your case has been shuffled into the wrong the channel to be dealt with and you've got a standardish letter. Call them (but be prepared for a long wait); whenever I've got through to humans at HMRC they've been helpful in getting things right. It has sometimes taken being shuffled around a few people to find the right one to deal with my query, but generally I've had things resolved with one (sometimes lengthy, sometimes with a long hold) call.

Agree get in touch. But from what you’ve said I wonder if the letter is a scam? So worth contacting them via details on gov.uk rather than anything on the letter

Yes, absolutely that. Have a look online, use their chatbots to find the best guidance pages, and call a correct number.

It may also be worth speaking to your payroll department in case something was filed in error their side

Thanks for replies.

I'm confused that they're thanking me for tax returns that I've never done.

Scam or they’ve got you mixed up with someone else.
I would ring them.
Usually if you owe them money the letter will be accompanied with full breakdown of what you have paid and what you owe in statement form.
Have a close look at the grammar and spelling. Check that they have used your correct tax number and NI number.
Could it be to do with the measures taken during Covid. If you were furloughed have your company messed up allowances. Obviously payments for furlough are unlikely to have travel allowances.

First things first - do they have your correct NI number and taxpayer reference (if you have one) on the letter?

if so, either phone, or set up a personal tax account online which will let you see what their systems think you have etc. There's a few ID hoops to jump through but otherwise usually straightforward.

Ugh, Dh had one of these. Similar but not the same.

He responded, saying he didn’t owe them anything.

4 weeks later he got a leather threatening credit block list and claiming from bank account. Hw had to ‘appeal’ the initial demand.

He did this, with evidence from his employers. This was 6 months ago. Heard nothing since

I wasn't furloughed during lockdown - worked as normal throughout.

Detailed breakdown:
Travel and subsistence £X000
Professional fees £X000
Other expenses and capital allowance £X000

I don't know what the last one could be as I only claim mileage and food at a set daily rate.

Sounds like a scam if they are totally in the wrong with their data.

I had similar 8yrs ago and also didn't submit my own tax returns. The dates went back up to 6yrs beforehand and claimed I'd underpaid tax in 3 yrs running! They too said I hadn't declared benefits in kind 😬. Luckily, I kept scrupulous records and receipts and worked out that they related to work expenses- which I was legally allowed to claim.
So if my train to another site was £100, and I received that £100 back from payroll- they wrongly thought I should be taxed on that 'income'.

I can't recall if I called the phone line, but did sent copies of receipts, expenses etc and had to fill in various forms. This was years ago, so I can't recall the exact details, but I felt confident that I hadn't done anything wrong, but it was still a worry. In the end, I received a cheque for about £120! They'd realised the mistake (although didn't say that) and actually overcharged me one of those years, hence the money back!

I agree, check the details on the form are indeed correct and don't use the contact details on the form- look them up. Best of luck, but it will likely be sorted soon.

Edited as read your update. I too claimed subsistence and professional fees at the time, so might be the same as me.

Sounds like a typical scam tbh.

On the few occasions I've rung and finally got through to someone they have been very helpful. Clearly a mistake on their part, it happens, best to call and good luck. Xx

I got this ages ago. I think exactly the same number of 10k.
I rang them, it was over in under 30 seconds.
Irony being that I got a rebate of 2k a few months later because of maternity leave !

Have you got an government gateway account, because you should be able to go and see what calculations they have done

Maybe one of the dodgy tax refund companies have submitted tax returns in your name and pocketed the tax refund arising from those expenses claims, and now HMRC are pursuing you to get it back. Sadly quite a common scenario.

They get things really wrong sometimes.

My husband had a postgraduate loan to payback with his tax return last year according to HMRC ... he's never done a postgraduate degree!

They were helpful on the phone.

So if my train to another site was £100, and I received that £100 back from payroll- they wrongly thought I should be taxed on that 'income'.

You know @CJ0374 I think that's what they've done!

They think I've tried to claim expenses (that were reimbursed by my employer) against tax. How they've come to that conclusion, I don't know.

Plus they're saying I claimed about £10k in expenses which is nonsense.

Going to set up a Gateway account!

Thanks everyone.

So if my train to another site was £100, and I received that £100 back from payroll- they wrongly thought I should be taxed on that 'income'

This should be itemised as expenses on your payslip and isn't taxable.

OP your health insurance should be declared to HMRC on a P11D which comes out around now. You then pay tax by an adjustment to your tax code.

If your professional fees are essential to your job, they shouldn't be taxable, mine aren't.

But if HMRC are saying you've done tax returns and you haven't, either there's a mistake or you've been victim of one of those scam companies that claim to get you a tax refund but declare a load of false allowances that they pocket, leaving you to make up the difference later.

Sounds like a scam. Scammers are constantly using HMRC as a cover with all the "claim your tax rebate" "you owe us £0000 of unpaid tax"

if you've never filled in a tax return because you're PAYE for example, then you'd have to doubt this is genuine.

I would start with your employers payroll dept and talk about what these letters are claiming to see if they can help shed light on it.

Yes to checking your HMRC account via Gateway.

But I'd also talk to your employer's payroll department to see if they can shed any light on this.

Then get all your paperwork in order, settle down with a pot of tea and some chocolate....... and call HMRC. Do so at 8 am precisely, and not on a Monday...

Be prepared for a long wait.
My message received by them in November 2023 is still waiting to be dealt with. Apparently I can expect a reply in September 2024.
I suspect this is because they owe me money.
HMRC are in a complete mess atm.

I had something similar with child benefit. Apparently I wasn’t entitled to claim benefit for my 3 children. (I only had one at the time). When I got through to a person it was all sorted out very quickly.

OP your health insurance should be declared to HMRC on a P11D which comes out around now. You then pay tax by an adjustment to your tax code

Thanks @Bjorkdidit I'd forgotten about P11D. Dug it out and health insurance has been declared for every year that HMRC are claiming I've underpaid tax.

If your professional fees are essential to your job, they shouldn't be taxable, mine aren't.

Yes, they are essential for my profession. Good to know they aren't taxable.

Thanks again everyone.