Tax question

Youstolemyname · 3 Mar 2008 at 19:56

Whos responsibility is it to ensure the correct amount of tax is being paid when on a PAYE system? The employer's or the employee's.

For example, say you had discovered your employer had not applied a deduction for an item that has benefit in kind and the taxman came knocking for that unpaid tax....what would be the correct procedure?

*walks away whistling*

Rotty · 3 Mar 2008 at 20:06

the correct procedure is you pay the taxman, not what you wanted to hear I'm sure

you may be able to get them to factor the shortfall into next years tax code

Vonhelmet · 3 Mar 2008 at 20:13

Talk to your employer. They may be able to resolve it for you. The treatment of the benefit in kind will depend on their arrangements with HMRC.

If they're no help, you'll have to settle it yourself. As Rotty says, you may be able to have it amended by way of an adjustment to your tax code.

Questions:

1) Have you underpaid or overpaid?
2) What is the benefit in kind?
3) What have they done wrong?

Youstolemyname · 3 Mar 2008 at 20:33

I've underpaid as they forgot to change my tax code from my last job as I got a company car on starting this job.

Thankfully it has only been six months but it is still a not insignificant amount of money.

I am going on the warpath tomorrow to find out just who's fault it is within the company. Sure, some of the responsibility sits with me as I didn't check the tax code on my payslips until now, but nevertheless it is someone's job within payroll to ensure all employees are taxed at the correct rate. If I don't do my job correctly I am accountable and so should they be. Especially with something as significant as pay.

Youstolemyname · 4 Mar 2008 at 09:54

Well, it turns out that the company only submit car ownership records quarterly hence why my tax code hasn't changed since I got the car in december. I owe a lot less than I thought and it just means my tax code for this year will be a lot lower and they will collect what I owe over the next 12 months.

Phew

Kemik · 4 Mar 2008 at 11:04

Youstolemyname said:
I've underpaid as they forgot to change my tax code from my last job as I got a company car on starting this job.

Thankfully it has only been six months but it is still a not insignificant amount of money.

I am going on the warpath tomorrow to find out just who's fault it is within the company. Sure, some of the responsibility sits with me as I didn't check the tax code on my payslips until now, but nevertheless it is someone's job within payroll to ensure all employees are taxed at the correct rate. If I don't do my job correctly I am accountable and so should they be. Especially with something as significant as pay.

Actually, it says on the letter they send with this years tax code that it's your responsibility to make sure your employer has the correct tax code.