I recently posted on here that the Inland Revenue (IR) had failed to re-instate my tax code following several months of not paying any tax. As a consequence of this I have been told by the solictors to whom I pay my IPA that they now need to reimburse me the money on top of my £200 IPA that I have been paying them since April 2009 as the IR should have re-instated the tax code.
The solictors told me that the IR would want all the tax money back that I should have been paying since April 2009. I just wondered if anyone had any experience of this as I would be interested to know how this was dealt with. I did inform the IR last week that they haven't yet re-instated my tax code and they said they would "soon". They never mentioned anything about me paying back the money I haven't paid them. I am not really impressed that the IR can simply give you an NT tax code whenever they get round to processing the OR's request but yet when they forget to re-instate my normal tax code I have to deal with all the repercussions.
A friend has told me that my tax code will simply be adjusted for the remainder of the 2009/2010 tax year in order to pay this money back but as I am getting a lump sum refund from my solictors this is in effect like getting an interest free loan from the IR that I pay back over the rest of the tax year??? I am scared that I am goign to be hit for a 3 month tax bill in one hit, I have tried to explain to the solictors that when you are BR you cannot exactly rely on your non-existent overdraft to pick up the bill for the tax man.
This sounds a bit like trouble in the making! You could end up paying the solicitors the tax that hasn't been taken and then HMRC adjusting your tax code in order to claim the tax back over the next financial year.
I've heard of the tax code not being updated from a NT code a couple of times but as soon as the person contacts HMRC they send out an updated code to the employer.
All you can do is chase HMRC to get the tax code updated and once it is phone them and see if they are expecting you to pay back the tax that hasn't been taken from you this year or whether the tax code has taken this into account.
Thanks for your reply, I just really want it confirmed whether the tax code will take into account the 3 months of tax I haven't paid the HMRC as if it does I will definately need the money back from the solicitors.
Hopefully this will all be sorted by the time I get paid next Wednesday, I really hoped that once I had got to April 09 it would be a simple case of paying my IPA and getting on with the next few years but now I have to sort this mess out.
IPA and tax code changes
Posted - 07 July 2009 : 12:28:31
