Tax Issue + ILR

[RegularInv]

Hello,

I've got a pending tax issue with HMRC, specifically that I owe HMRC some tax for year 2009. Though, the company I work for has identified an error and communicated back, but since HMRC are currently overloaded with work, my case isn't likely to be reviewed before middle of December.

My ILR is due for first week of January and this tax issue isn't likely to get over before that due to earlier mentioned reasons.

I am not really sure if this could be an issue with processing my ILR.

Any help is highly appreciated.

Thanks.

[RegularInv]

104 Views, no replies... Anyone please?

[John]

I suspect that the tax issue will not matter, but can you give more details of the way the arrears have arisen? That is not clear from what you have posted.

[RegularInv]

Thanks John for replying.

Issue for tax year 2008-2009

I was under consultation period and was inline to be made redundant in Dec 2008.
Later redundancy was cancelled and am employed in the same company till date.
Though p45 was generated in Jan 2008.

p60 details provided to HMRC by payroll dept follows;

Total salary = Salary till Dec 2008 + Full year salary
Total tax paid = Full year tax ONLY

As per p60 there is no account of tax for salary I've recieved till Dec 2008 and that is where the problem is. p60 submitted by payroll says I've earned lot more than I've paid tax for.

This has been identified by payroll and communicated back to HMRC.

I've got communication details (letters) between me and HMRC and company and HMRC along with calls I've made to them as a proof that I've been in touch regarding this issue.

Happy to specifiy more details.

*I accept I should've seen this before, but here I am.

[John]

OK, but I am not sure I understand. You were made redundant and issued with a form P45? Later you were re-employed and you handed in parts 2 & 3 of your form P45 to your "new" employer.

So when the employer did the PAYE end-of-year work in April/May, after the end of the tax year, they reported the correct amount of tax, but over-calculated the amount of salary?

So for you, were is the problem? HMRC merely need to correct the amount of salary in their records. I can't understand why they cannot do that before December. It will take just seconds to enter the correct details.

[RegularInv]

OK, but I am not sure I understand. You were made redundant and issued with a form P45?

- Yes

Later you were re-employed and you handed in parts 2 & 3 of your form P45 to your "new" employer.

- Re-employed, yes. But with "same" employer.

So when the employer did the PAYE end-of-year work in April/May, after the end of the tax year, they reported the correct amount of tax, but over-calculated the amount of salary?

- Yes

So for you, were is the problem?

- As per HMRC, they don't try to resolve this issue with company. As from their point, its me who has underpaid tax. And so I got the initial letter and I have to resolve this. Though its an error from company side.

HMRC merely need to correct the amount of salary in their records. I can't understand why they cannot do that before December. It will take just seconds to enter the correct details.

- Yes, they merely have to correct the amount and case would be resolved. But since they are too busy at the moment (with all the tax issues going on) letter sent by the company (between 3rd and 10th Sept) will only be looked at middle of December.

My ILR is due first week of January, so have some time in between. But in case they don't agree to the calculations sent by company, it might take another couple of months.