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Tax Troubles – Making a situation worse

Tax Troubles – Making a situation worse

Authored by Phil Meekin

Phil Meekin

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Approximate read time: 3 minutes

My husband has been having ongoing issues regarding his tax for a couple of years now. This has not been helped by his employer or the revenue.

It was becoming an absolute joke. He would receive several notice of coding’s on a weekly basis, changing his tax code and letters demanding money. Then he would be advised he was due a refund – we were very confused.

After one letter demanding a ridiculous amount of money, my husband gave the revenue a call to provide a breakdown of the bill. He also wanted to see how 2 bills could differ so much. The revenue had entered that he owned 2 company cars. My husband explained he only owned one and they asked the question ‘are you sure’? He was very sure, he checked what other vehicle was listed and discovered they had the same car, reg, make, model listed twice. They updated their system but we were both left very frustrated.

A couple of weeks later, my husband received a lovely letter stating he was owed a £3k tax rebate. Automatically assuming this was due to the company car listing, we were actually going to get some money back. We happily accepted the refund and booked a holiday as a nice unexpected treat.

Several months passed and another notice of coding was received. This letter said they could not take all of the money owed through the tax code because it exceeded £3,500. Very confused my husband called again, it had turned out that his employer had a junior member completing p11d’s. She had entered that my husband didn’t have a company car anymore, that is why we received the refund letter. We had assumed the confusion was in connection with the 2nd car entry. When his employer realised they reissued the p11ds with correct data hence the demand again. My husband was getting more and more frustrated. While the revenue stated they only work with data provided from his employer and wouldn’t accept any responsibility. His employer stating he should have checked his copy of the paperwork submitted – he couldn’t win.

We gave in and went to see an accountant.

We thought we were finally getting somewhere with the start of the new financial year and our accountants assistance but again another letter, and a demand came through saying he owed over £4k. After our accountant badgered for a breakdown, it was discovered the revenue had forgotten to deduct the amount already paid back through his tax code from the previous year, reducing the bill drastically.

My husband is currently out of work so the revenue demanded full payment as there is no active PAYE code for him. We were never avoiding payment just a true figure to work too.

My husband called to arrange a payment plan but straight away he was quoted a different figure to what our accountant stated, it turned out they had decided to charge interested from January for late payment, even though they didn’t sort the true figure out until April. How can they charge interest on a wrong figure!

The advisor at the revenue stated, do you own a vehicle? My husband was taken a back a little and asked, why? The advisor said well you could sell one to raise the money to pay our bill. The advisor then continued to ask if my husband could use a bank overdraft or get a bank loan to repay their bill back. Anyone would think we offered them 1p or refused payment. How is this advice helping anyone.

In this industry you see the consequences of taking on additional credit to cover bills etc and you would think the revenue of all people would try and help you not put you in a worse position.

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