i have been asked to fill out self assessment for 2010 and 2011 ( i used to do SA and was told to stop 5 years or more ago) and I owe approx 7000 and 9000 pounds for each year. I work for a company and pay PAYE and it looks like my company car and fuel has not been taxed for 2 years and my salary plus bonus exceeded 100k in 2010 and 11 so my tax allowance should have been zero rather than circa 7700. my company sent all my car details each year to HMRC and I received correct P11D and P60 details each year....now I am expected to pay a huge tax bill and feel I have done nothing wrong but between my company and HMRC they have not taxed me correctly. Can you advise what I can do if anything? thank you Adrian
System of Law: England-and-Wales
just spoken to my company and tax office.....HMRC just say that I owe tax and should ask parents, friends, get a loan to pay it!...very helpful!!
Hi AdrianI hope i can help you. There are few options you can follow as noted below:1. A little known tax law called Extra Statutory Concession’ (ESC) A19 covers the situation when HMRC failed/delayed to using information already provided to them, and this results in an underpayment of income tax by an individual; And you had a reasonable belief that your tax affairs were in order. In that case HMRC are legally required to stop following up on the underpayment. In 2011, about 70,000 people applied this law when they got letters of underpayment of tax from HMRC. To read more about this law please see link: http://www.hmrc.gov.uk/esc/esc.htm , it will also tell you about the time limits, what next if you are not successful with this law, and other actions you can take; how to make the claim etc2. If you intend to make a payment then you can agree with HMRC for a lenient repayment schedule ie spreading repayment over a number of years; However if won't be able to pay back directly ,the tax you owe may be taken through your tax code.3. If paying the tax you owe will cause financial difficulties. Say if you can't afford to pay the money you owe or paying it through your tax code over one year would cause you financial difficulty, contact HMRC using the address or telephone number shown on your P800 Tax Calculation or Self Assessment Calculation to discuss options for paying..they can even further extend your payments.Hope this helps. I guess you should try option 1 first, then if it fails then option 2 & 3.
Chartered Accountant >20 years + Qualified IFA