Underpayment Of Paye Tax - Employer At Fault?

ESD1711

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Has anyone ever had to deal with a case where they've underpaid tax on their wages and its been the fault of their employer??

Basically, I work two jobs. One full time and one part time a few nights a week.
Back towards the start of this year (Jan / Feb) - i noticed that my part time employer had stopped taxing my wages, which I thought was a bit odd. I raised this at the time, stating that I thought I should be getting taxed.
They insisted that as I wasnt doing a lot of hours, i wasnt making enough to get taxed on it. Again, I found this a bit odd given my main income and informed them that I would have exceeded the threshold based purely on that and that.
I have email evidence of the fact I raised the matter, stated I thought I should be getting taxed and also of the fact i'd told them I had a second income.
Anyway - fast forward to yesterday and i've come home to a letter from HMRC stating that i've underpaid my tax by £521 for tax year 13/14.

As you can imagine, i'm less than amused.
I notice in the notes that theres a section which claims that if the defecit is due to an error on the part of your employer - they may be held liable for the bill.
So i'm just wondering - has anyone done this before or been through this? Do I have a good case to argue in terms of the employer being held liable for this - or am I about to get shafted for it despite the fact i'd raised it and questioned it??
 
"If you work for more than one employer
If you work for more than one employer, you'll get a special tax code to take this into account.

Your tax allowances - amounts that you can get to reduce your tax bill - will normally be given against the pay from your main job. Your other job(s) will be taxed at the basic, higher or additional rate, depending on your total income."


Have you got a special tax code?

It's a difficult one, as your 2nd employer hasn't necessarily made a mistake and ultimately all of your tax affairs are your responsibility . Even if you PAYE it's up to you to ensure that the details are correct.
 
Used to have a BR tax code for the second job, but at some point that changed to an L code.

Have just spoken to HMRC on the phone and I've to put everything in writing - but the feeling i'm getting is that I've not a leg to stand on despite flagging this up 7 months ago.

And as its been going on up till now - I've probably got the same to look forward to next tax year to cover the shortfall theres gonna be from April to Sept of this year.
 
It sucks mate, especially when you have raised it with your employer.

Don't forget though, it's not costing you anything as this is money you have been paid extra (as you would have paid it in tax otherwise). It's annoying as it's probably already been spent, but it was extra money that you do owe.

If it makes it any easier you can arrange to pay it back through PAYE so you don't notice it and it'll just come out of your normal monthly tax.
 
HMRC won't ask for it in one lump sum (thankfully), they'll just amend your tax code for next year to essentially 'pay it back'.
 
I have had the similar issues due to having a forces pension as well as a wage. Hmrc failed to account for my pension and did not tax it. correctly. This left me a bill of just under 4 grand owing and due to it getting sorted half way through the year I had another bill for 2 grand. I am paying the first one back over three years from my bank and the second one from my tax code again over three years.
There is a form that you can send to the about the arrears being out of your control. I cant think of the number now but google may well show it up.
 
Hi I've got two jobs under paid tax 1000 quid tax sent me a letter changed tax code for main job and paid it back over the year
 
I had this when I went from PAYE to being self employed,i owed £367 that I presumed would be sorted when I got my tax return done..............not the case so I contacted the inland revenue who pretty much said I was responsible for checking my tax code to make sure it was correct when I was PAYE!
Back then it had to be paid back in full and no offer to pay it later or in instalments.
 
I was working for a two company's so it was their error with tax code
 
Doesnt matter who's fault it is - you are the one who has to pay the tax owed. Tax codes are issued by hmrc and neither employer's payroll people will be figuring this out for you. I had been taxed incorrectly when I switched jobs twice in one year and hmrc thought that I had two jobs, which was not the case. I had to speak to local tax office in order to have my tax code amended and sent to the employer, who then amended my salary numbers. Its not a nice place to be in, but taxman only cares for one thing... Hope you get it sorted OK.