Chick Posted March 10, 2014 Report Share Posted March 10, 2014 wanted to pick your brains guys .... a friend has received a letter from HMRC informing her she had underpaid tax 20 years ago and they want a payment of £x to recoup this (not sure on figures but doubt it is a big amount). She has always been PAYE, although has changed jobs but seriously, 20 years ago is a bit too long is it not? I thought there was a cut off point they could try and reclaim? Any words of wisdom for a short but to the point letter to tell them to go swing to help her? Ta Link to comment Share on other sites More sharing options...
patently Posted March 10, 2014 Report Share Posted March 10, 2014 That has to be a try-on, surely?? I thought* it was 6 years? *not an expert though Link to comment Share on other sites More sharing options...
Twinspark Posted March 10, 2014 Report Share Posted March 10, 2014 Is she sure it's a genuine HMRC letter? - seems unusual for them and there are lots of scams out there. Link to comment Share on other sites More sharing options...
Calm Chris Posted March 10, 2014 Report Share Posted March 10, 2014 (edited) It's 6 years, but the crafty bit (it may of changed) is that can be from the last error. So error in 2007, would mean they could jump back another 6 years. There is proven argument that if she was PAYE then the fault lays with both the HMRC and the employer rather than the individual. The employer reports, the HMRC should check that against the employee return and anomalies get picked up, it shouldn't take 20 years. The only instance I could think of would be benefits such as driving a BMW and declaring a mini or nothing. Without knowing more information it's a very unclear statement of non facts. If they have gone back that far, your friend has upset someone either by doing something outrageous or (likely) continuing to ignore demands / failure to give any response to letters. Edited March 10, 2014 by Calm Chris Link to comment Share on other sites More sharing options...
garcon magnifique Posted March 10, 2014 Report Share Posted March 10, 2014 Personally I'd send them a video of me wiping my arse on their letter. 2 Link to comment Share on other sites More sharing options...
Calm Chris Posted March 10, 2014 Report Share Posted March 10, 2014 I'm pretty sure they'd have you up on some "trumped" up charge. 1 Link to comment Share on other sites More sharing options...
Chick Posted March 10, 2014 Author Report Share Posted March 10, 2014 I'll ask her for some more details ....... might make it a bit clearer but I'd have thought being paye only eventually any shortfall would have been sorted by tax code adjustments. Link to comment Share on other sites More sharing options...
Luke Posted March 11, 2014 Report Share Posted March 11, 2014 PAYE tax codes are constantly wrong though. 1 Link to comment Share on other sites More sharing options...
NewNiceMrMe Posted March 11, 2014 Report Share Posted March 11, 2014 They were chasing me for a 1999 return up until 4 years ago. That's after they admitted receiving it, and subsequently losing it. Link to comment Share on other sites More sharing options...
Booster Posted March 11, 2014 Report Share Posted March 11, 2014 Are they asking her for unpaid tax or underpaid pension contributions (NI)? It is more likely to be pension contributions I think after that amount of time. Link to comment Share on other sites More sharing options...
CarMad Posted March 11, 2014 Report Share Posted March 11, 2014 Unless she has had a company car and not been telling them, that could leave her in a really bad position, agree on PAYE most of it should be handled. Link to comment Share on other sites More sharing options...
DanG Posted March 11, 2014 Report Share Posted March 11, 2014 The Statute of Limitations is indeed 6 years, but is NOT enforceable for unpaid Tax (and NI), nor interest charged on the unpaid principal. The HMRC have no time limit to start proceedings on these. It is also the employees responsibility to ensure PAYE / Tax coding is correct, not the employer (as they go bust). HMRC will get their 40 pieces of silver....tell your friend to tread carefully and be polite and there could be a settlement figure agreed, possibly with no interest. Link to comment Share on other sites More sharing options...
DanG Posted March 11, 2014 Report Share Posted March 11, 2014 Oh and unless she is retired, then they can amend her Tax code, effective immediately, to start recouping the debt.... Link to comment Share on other sites More sharing options...
NewNiceMrMe Posted March 11, 2014 Report Share Posted March 11, 2014 (edited) Funny that, I was about to say that I think you'll find HMRC can do just about what they like. I was going to put the F word in there too. It merits it. MrsMe had an ex-employee whining about the fact they were being chased for company car tax from 3-4 years ago. Basically, the tax code hadn't been updated and it was an error. Did the employee point out that their income remained the same despite moving up to a significantly higher value and higher tax band car? Of course not. Then they came back whining and shouting about how it was the company fault (and that they should pay the tax!). I decided I would help things when the individual got very mouthy on the phone to MrsMe and she came home a little upset about it (and that isn't MrsMe normally). So I rang HMRC and told them a few other things about the ex-employees part-time work that I knew they did. Never heard back from the ex-employee. Edited March 11, 2014 by NewNiceMrMe Link to comment Share on other sites More sharing options...
Chick Posted March 16, 2014 Author Report Share Posted March 16, 2014 right, I've only just been sent over the documents: Letter 1 was sent to her address in Scotland ... she rang and queried what /when it was from and letter 2 dated 1994!!! Had been set to her parents house, she'd moved out by the time she started working so said she has no knowledge of letter 2. Even more frustrating the figure has also changed ..... personally for the sake of the small amount I'd just pay and think "oh Feck Orf" but I guess out of principle should she query further? https://dl.dropboxusercontent.com/u/11518396/scanL1.pdf https://dl.dropboxusercontent.com/u/11518396/scanl2.pdf Link to comment Share on other sites More sharing options...
Luke Posted March 16, 2014 Report Share Posted March 16, 2014 Tell me that's the wrong amount she's arguing about! Link to comment Share on other sites More sharing options...
Booster Posted March 16, 2014 Report Share Posted March 16, 2014 Goes off to open lots of credit cards with your mate's details...... Link to comment Share on other sites More sharing options...
Chick Posted March 16, 2014 Author Report Share Posted March 16, 2014 I think so .... I didn't know the amount til I opened my email either. lmao Link to comment Share on other sites More sharing options...
Chick Posted March 16, 2014 Author Report Share Posted March 16, 2014 Goes off to open lots of credit cards with your mate's details...... what details can u see? I've blanked it all out!! Oh, and if she's arguing over the amount, I'd probably say she's already spent up Link to comment Share on other sites More sharing options...
NewNiceMrMe Posted March 16, 2014 Report Share Posted March 16, 2014 You have GOT to be having a fecking laugh. 1 Link to comment Share on other sites More sharing options...
Booster Posted March 16, 2014 Report Share Posted March 16, 2014 I can see her name, addresses and NI number!! Link to comment Share on other sites More sharing options...
Chick Posted March 16, 2014 Author Report Share Posted March 16, 2014 OK thanks, I've dropped the linky now .... funny as when I open them they are blanked out!! Probably should have got the kids to do for me .. Link to comment Share on other sites More sharing options...
eldavo69 Posted March 16, 2014 Report Share Posted March 16, 2014 Go on, how much for? Link to comment Share on other sites More sharing options...
Chick Posted March 16, 2014 Author Report Share Posted March 16, 2014 have a guess first ....... ( clue: you'll have earned more int he time taken to read this thread) Link to comment Share on other sites More sharing options...
eldavo69 Posted March 16, 2014 Report Share Posted March 16, 2014 I don't work weekends Link to comment Share on other sites More sharing options...
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