I've been told I owe HMRC money in taxes

[Deleted User] · 25/10/10 - 19:56

In 2008 I worked in a retail shop for 1 month and I've been told I owe the government £120.

Since I was a student I don't see why I should pay since they calculated the tax not me. What should I do?

fat controller · 25/10/10 - 19:58

Pay it. It is not worth messing with HMRC - unpaid taxes are the only debts that you can be put in jail for.

Cruachan · 25/10/10 - 20:07

asantewah87 wrote: »

In 2008 I worked in a retail shop for 1 month and I've been told I owe the government £120.

Since I was a student I don't see why I should pay since they calculated the tax not me. What should I do?

If that is the case, you must have had other income during the year which used up your allowances - or HMRC thinks that you had.

If you did not have sufficient income to become taxable, tell HMRC. Else pay what you owe.

[Deleted User] · 25/10/10 - 20:08

Is it enforceable??

I thought they had the following year to tell you about tax you owed. I.e. if you owed for tax accrued between 6 Apr 2008 - 5 Apr 2009, I though they had to tell you prior to the end of the following tax year (in this example, 5 Apr 2010).

Or have I grasped this wrong?

Weigh-Man · 25/10/10 - 20:12

muffin789 wrote: »

Is it enforceable??

I thought they had the following year to tell you about tax you owed. I.e. if you owed for tax accrued between 6 Apr 2008 - 5 Apr 2009, I though they had to tell you prior to the end of the following tax year (in this example, 5 Apr 2010).

Or have I grasped this wrong?

That's how long you have to pay your standard end of year tax bill. This is different because it's an underpayment that's been discovered after the tax year, as far as I know there is no time limit on having to pay that back.

It could still be contested though but your dealing with HMRC so good luck to the OP.

Cruachan · 25/10/10 - 20:13

muffin789 wrote: »

Is it enforceable??

I thought they had the following year to tell you about tax you owed. I.e. if you owed for tax accrued between 6 Apr 2008 - 5 Apr 2009, I though they had to tell you prior to the end of the following tax year (in this example, 5 Apr 2010).

Or have I grasped this wrong?

The basis for the application of the Extra Statutory Concession is set out at http://www.hmrc.gov.uk/esc/esc.htm

blueisthecolour · 25/10/10 - 20:19

Cruachan wrote: »

If that is the case, you must have had other income during the year which used up your allowances - or HMRC thinks that you had.

If you did not have sufficient income to become taxable, tell HMRC. Else pay what you owe.

It's possible that this is for National Insurance. This isn't pro rata'd for the year.

[Deleted User] · 25/10/10 - 20:23

Weigh-Man wrote: »

That's how long you have to pay your standard end of year tax bill. This is different because it's an underpayment that's been discovered after the tax year, as far as I know there is no time limit on having to pay that back.

It could still be contested though but your dealing with HMRC so good luck to the OP.

Cruachan wrote: »

The basis for the application of the Extra Statutory Concession is set out at http://www.hmrc.gov.uk/esc/esc.htm

Oy vey!!!

I'm out

Cruachan · 25/10/10 - 20:26

blueisthecolour wrote: »

It's possible that this is for National Insurance. This isn't pro rata'd for the year.

I don't know about the treatment of NI, but the OP did say "taxes" in the title rather than NI.

Shadow27 · 25/10/10 - 20:38

fat controller wrote: »

Pay it. It is not worth messing with HMRC - unpaid taxes are the only debts that you can be put in jail for.

I would urge anyone to check first though - they are as faulty as the next big business. My letter arrived today that claims I owe £243 NI despite actually working during the time they claim I wasn't - it is either the fault of my former employers or the HMRC and they are both on equal pegging in the stupidity race.

This assumption is based on a catalogue of errors -
- my martial status seems to vary from Miss, Ms and Mrs despite me calling them and posting them numerous copies of my marriage certificate. I have been married for 15 years.
- they allocated me another NIS number once and moved me to their Wales office
- My first name is spelt incorrectly on an irregular basis. It is unusual but I've had it all my life and as well as being bad record keeping it's very rude.

So check and check again and provide evidence OP if you know that they are wrong. I shall charge them as idiots that owe me £243 until they can prove otherwise as I have the pay slips to say they are wrong.

However, if they are right then just as fat controller says, pay up pronto.

Ginger Daddy · 25/10/10 - 20:41

asantewah87 wrote: »

In 2008 I worked in a retail shop for 1 month and I've been told I owe the government £120.

Since I was a student I don't see why I should pay since they calculated the tax not me. What should I do?

Since when does being a student exempt you from the payment of tax and/or NI?

I suggest you do some research. You might be in for a shock.

[Deleted User] · 25/10/10 - 20:46

Ginger Daddy wrote: »

Since when does being a student exempt you from the payment of tax and/or NI?

I suggest you do some research. You might be in for a shock.

I was student which meant I did not work full time. I worked under the rate I should be taxed . I only earnt £500 that year.

Ginger Daddy · 25/10/10 - 20:50

asantewah87 wrote: »

I was student which meant I did not work full time. I worked under the rate I should be taxed . I only earnt £500 that year.

Well that's not what you said in the OP. You suggested because you was a student, you shouldn't have to pay tax.

However thank you for the clarification as to how much you earned, which is indeed under the normal taxable threshold for ANY normal person on the standard taxcode. Which includes students.

Glen · 25/10/10 - 20:53

asantewah87 wrote: »

I was student which meant I did not work full time. I worked under the rate I should be taxed . I only earnt £500 that year.

Does it say how this figure of £120 was calculated; and what is it for, income tax or NI?
Do you have your payslips and P60 for that year and what do they say you earned and paid?

Cruachan · 25/10/10 - 20:56

asantewah87 wrote: »

I was student which meant I did not work full time. I worked under the rate I should be taxed . I only earnt £500 that year.

Then tell HMRC.

Or did you get paid more than you earned? One gets taxed on what one gets paid, rather than what one earns. A colleague of mine earns every penny he gets paid. Another colleague gets paid the same, but she does not earn it. But that is a management issue.

[Deleted User] · 25/10/10 - 21:00

Ginger Daddy wrote: »

Well that's not what you said in the OP. You suggested because you was a student, you shouldn't have to pay tax.

However thank you for the clarification as to how much you earned, which is indeed under the normal taxable threshold for ANY normal person on the standard taxcode. Which includes students.

You know what's funny I haven't even claimed the tax they payed me for that year.

The slip is still in my room.

Cruachan · 25/10/10 - 21:02

asantewah87 wrote: »

You know what's funny I haven't even claimed the tax they payed me for that year.

The slip is still in my room.

Ahhhh, that explains things. HMRC does not pay people tax. It either deducts or repays tax. So, if somehow, you got paid tax, HMRC will want it back.

gemma-the-husky · 26/10/10 - 07:35

you may not owe the tax - it depends on your other income - but of course its enforceable - with penalties if you dont pay on time

basically its your own responsibility to declare and pay tax.

Rawr! · 26/10/10 - 07:38

Watch those HMRC bastards, they're as incompetent as it's possible to be.

[Deleted User] · 26/10/10 - 11:17

gemma-the-husky wrote: »

you may not owe the tax - it depends on your other income - but of course its enforceable - with penalties if you dont pay on time

basically its your own responsibility to declare and pay tax.

I am not self-employed I thought the govt taxed my earnings automatically.

So what should I have declared?

[Deleted User] · 26/10/10 - 11:34

There is a telephone number with the letter.

Give them a phone and ask what it's all about. I'm a bit confused by your post. You can earn over £6k before tax is payable. If you only earned £500 in the tax year you are not liable.

Kalmia · 26/10/10 - 13:04

There's no way that if you only earned £500 in a full tax year (April 08 to April 09 in your case) that you owe £120 in tax.

Did you get a P45 when you finished work? Was it right? Maybe your employer didn't inform HMRC that you'd finished work.

Did you get any tax back for any reason during that period? It may have been paid on the assumption you'd work all year and now that you haven't, they want it back.

Call HMRC and ask them to explain where it has come from. Check that they have the right dates of employment and income for you.

Hey there!

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I've been told I owe HMRC money in taxes

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