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Christina85
Junior Member
United Kingdom
208 Posts |
 Posted - 03 December 2010 : 17:50:50
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Hi Everyone
I could really do with some advice as I am really worried. I got a dreaded P800 under payment of tax letter from HMRC today saying that I have under paid income tax for 08/09- the year I went Bankrupt.
I was under the impression that any tax from the date I was made bankrupt in that year went to the OR towards my debts not to HMRC?
I went Bankrupt 25/08/08 and had been employed full time previously to that, paying tax via my employer.
When I went Bankrupt we then moved area and I also changed jobs in August.
My new employer deducted my tax as normal until Feb 09 when my nil tax code was applied and I paid the last 2 months of worth of tax directly to the OR myself. I can see, looking back at the paperwork that my OR then claimed the £613 worth of tax that I had paid since 25/08/08 as a tax refund to go towards my debts.
Does anyone know if I now owe HMRC for the tax money that my OR claimed back as on the P800 it shows the amount of tax owed as the amount for the full year (not the 5 months of that year before I went Bankrupt) and they have taken the tax refund that the OR had back off the amount I paid showing that I owe this amount- see below
Income: £15009
Tax Owed: £1778.80
Tax Paid: £1260.20 (£647.20 through my old employer before BR)
(£613 through new employer after BR)
+ Tax repaid £613 (taken by OR directly via tax refund)
=£1131.60 underpaid
Any feedback is greatly appreciated, I have called HMRC but they need an expert to look into it and call me back but could be 3 working days and I know I might not sleep until then!
Thank you
Christina |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 07 December 2010 : 15:43:15
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I also had a letter saying that I owed £2073 in unpaid tax and have a letter to my employer requesting them to put me on an NT code. I am so angry because I thought I would have no more stresses in my life. How could they get all this soooooo wrong?!
Maizie |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 07 December 2010 : 16:09:12
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Hi Guys
Do not take it for granted that two seperate Govt Bodies actually speak to each other !!!
If Still IN Bankruptcy speak to your OR case officer as they are in effect managing your estate, ask them direct for guidance.
Your OR would be upset if you gave preferential treatment to any of your creditors
Being on an NT tax code does not always mean that you have been BR, their are a number of reason for NT.
It comes back to where / when was the original debt ? pre BR great.#
good luck Richard |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 07 December 2010 : 16:22:07
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I was discharged over a year ago! I am so annoyed. I have done everything by the book, yet having to spend 1/2 hour waiting on an 0845 number for them to tell me that they will pass the information on to someone else and I won't get any contact from them for at least 4 working days.
I myself, won't be sleeping either!
Maizie |
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rollercoaster
Junior Member
United Kingdom
327 Posts |
Posted - 08 December 2010 : 20:42:29
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| Do not worry, both my husband and I got these letters saying we owed a total of nearly £4000, i rang and spoke to an advisor and she assured me that it was in fact a clerical error and thanked me for ringing to explain that my NT code for this period was due to BR. Lady told me I was not the first to ring up due to this situation! They are sending new confirmation this week. Just ring up and they will sort it. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 09 December 2010 : 14:46:03
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Hi Christina,
the problem could be, that firstly you moved to another area, you got another job, then the NT code wasn't applied until Feb 09, which could make HMRC think that you didn't go bankrupt until Feb 09.
The key to this, is probably to do with a form(TNIDIS tax and NI disclosure) that the OR sends to your local HMRC office that deals with your tax affairs, which then notifies them that you are bankrupt, and that the NT code should be applied. The fact that it wasn't applied until Feb 09(6t months later) seems to indicate that a delay has occurred in the process somewhere.
However, regarding your tax situation, you paid tax up to Aug 08, after which you should have gone on the NT code, and completed an NTIPA(i.e. for any tax you normally paid to go to your bankruptcy estate). This is probably down to 2 tax offices who haven't communicated(they rarely do!), it should eventually come out in the wash, as if you should have been on an NT code from Aug 08, how can you owe tax for the rest of the tax year?
Big Al |
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Christina85
Junior Member
United Kingdom
208 Posts |
Posted - 10 December 2010 : 20:11:24
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Hi Thanks for the replies, I was discharged over a year ago aswell so feel the same way as Maizie! It really makes you doubt things even if you know that you are in the right and don't owe them!
I paid tax via my employers all the way up to Feb 09 when the NT tax code came into effect (previous employer and new employer) but then I can see that the OR has also then claimed back the tax I paid from Aug 08 to Feb 09 from HMRC so they must know that I was bankrupt as they are the ones who gave the OR the tax refund! So frustrating!
I have called 3 times now and each time they say that the technical department will have to deal with it but no one is ever available! I asked the people I spoke to if they thought that I may be correct in thinking that I don't owe the money but they will not say either way!
They have sent my file for review and at first they told me they would get back to me in 3 working days but I called again today and said it was taking about 10 working days so will call back next Friday and hopefully get an answer.
Am I right in thinking that even if the PAYE was calculated wrong for example that any shortage before the bankruptcy would be wiped off anyway as it is a pre bankruptcy debt and also afterwards if they calculated wrong that I don't owe them tax anyway as I was bankrupt? Would help to put my mind at ease over the next week!
Will let you know how I get on, thanks again
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Christina85
Junior Member
United Kingdom
208 Posts |
Posted - 12 January 2011 : 16:29:00
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Just to let any one know who has had the same issue that I got a letter saying that I did not owe for the underpayment of tax- hooray!
They said it was an error in their records and they had not updated it to show that the nil tax code was because of BR! on the phone they said that this was an issue across the board so if you get an underpayment letter try not to worry as they should be able to sort it out! Christina |
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Topic |
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Do I owe HMRC for tax refund taken by OR?
