Tax and Tour Headaches....

Discussion in 'Army Reserve' started by bogislandlives, Feb 14, 2011.

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  1. Dear All

    Firstly I would like to say hello on my return after a few years enforced abscense.

    Secondly I would like to ask if anyone has been getting grief from HMRC over tax underpayments? Basically I have received a demand for a large underpayment covering the 2007 to 2008 and 2008 to 2009 period. In the first period I was mobilised and therefore only had income from one source, but HMRC claim I benefitted from two lots of personal allowances. During the second I paid tax at 40% on my combined income, I informed them I was back, as did Chilwell, as did my pay office, they adjusted my tax code, but now claim they did not collect enough. There must be a SME out there who can advise.

    This combined with a long running counter insurgency campaign against my ex-wife, psychological warfare by ex-girlfriends and a rise in the price of beer is beginning to irritate me.

    Many Thanks

  2. I find the tax office to be very helpful in person (phone or face to face). Like most people I get lots of conflicting automatically generated letters, tax codings, underpayment and overpayment letters (normally all ariving together). If you tax affairs really are a mess you can make an appointment and work through your tax bill 1:1 (free), otherwise there are plenty of tax accountants who can help (for a price) I guess there are some who give forces discounts.
  3. This is exactly what has happened to me, and a number of my colleagues in the RAF Reserves - Bill seems to be about £3,000 per person - as you say it's a double Basic Tax Allowance.

    I have spoken with HMRC, and they say the cause is because MOD changed your Tax Reference during the mobilisation process - possibly because you went onto JPA for mobilised pay back in 2007 (RAF used SAMA up until that point).

    My unit is collating information on all those people affected, and will be submitting a "class-action" case to the HMRC as this should be classed as an EMPLOYER (i.e. MOD) error, and not EMPLOYEE error (i.e. You!!).

    I have been advised that there is a good chance this could be written off, but in the first instance, speak to HMRC and advise them of the Reserve Forces issue. And then speak with your unit Admin and any other colleagues you know were mobilised about the same time - it is possible that lots of individuals are all panicking about these bills - where a unified response will help us all!

    If you struggle finding others affected, PM me a contact, and I'd be happy to discuss - or add you to our complaint!

    This quite possibly applies to all Reservists mobilised when JPA first went on-line....

  4. Ask Bravo_Bravo....he'll know!
  5. Honestly, we mob 2 or 3 times a year - for short stints. They give us the tax form, we double cross it through and write "Not Applicable" in the middle, and then sign and date it.

    Although Lllllllangelllllich (sp, obviously) are normally really helpful when it comes to trying to sort it out. Though if the mil have bolloxed it, they're unlikely to let you off the bill (rabid polyester's lawsuit not withstanding - employees are actually liable for their own tax, PAYE is just a convenience. Ho hum). It has happened, mind, so speak to them.
  6. I think you may have a better case than usual - as it's the Tax Ref that's caused the problem, and that's not on the payslips etc.

    This problem appears to only apply to mobilisations in Tax Year 2007/08.
  7. Errm, what bit of UK law allows class action cases?

    I'm not unsympathetic to your basic point - that the MoD haven't got their computers programmed competently to cat me as "D", rather than "BR" has caused me grief come tax time.

    Fundamental point of UK tax law - your tax is your problem. Not your employers.
  8. "Class Action" in this context is the combination of the details of all complainants, put together to HMRC as one complaint, rather than filing several individual ones, sorry for lack of clarity on my part!

    HMRC Statutory Instrument does allow for the "good faith" defence i.e. "How was I to know"... but I agree, it's a murky issue!

    Still worst case it's repayable interest-free over 4 years....
  9. I'm not a tax expert, sorry.
  10. I'm strangely disappointed with that answer, I fully expected you to be the Chuck Norris of tax matters.
  11. Chuck Norris doesn't do tax.

    He IS tax.
  12. the_boy_syrup

    the_boy_syrup LE Book Reviewer

    Happened to me after Telic 4
    I was fined £1000 and they changed my tax code to lower my threshold should I nudge 40%
    Tried appealing but they just threw it out

    Kit went back shortly after that way the Army and the tax man couldn't get confused as to where my earnings were coming from
  13. Gents,

    Just to offer a glimmer of hope....

    I also received a tax demand, for £3600, in January this year
    (coupled with a stupid woman skidding into my car, which was parked on the drive, the following day - I thought the first 5 days of the New Year couldn't get any better as you can imagine!!!)

    I was mobilised during 2007/08 and the tax form claimed that I didn't pay enough tax, at the 40% rate, for the periods 2007/08 and 2008/09
    After doing a bit of research, I found out that HMRC had started using a new computer system in 2009 and were working their way back through PAYE records - millions of people were receiving the same 'surprise' letters

    Anyway further internet research, and a very helpful HMRC officer, directed me towards making a claim under the 'Extra Statutory Concession (ESC A19)' procedure
    I adapted one of the letter templates (found at Tax error: Letter templates to challenge your tax demand | Money | and submitted my appeal to HMRC - I found template No.1 fitted my personal circumstances, obviously, yours may be different

    It took a couple of months, however, I've just received a letter from HMRC saying that they will now be writing the whole amount off for me!!
    (It looks like their guidelines state that they should inform you of any discrepancies within 12mths of the end of the tax year to which they relate)

    I know it's a serious first post (after years of lurking) but I thought it might help others save a few bob!!
  14. Thought it was just me. Yep, got a bill and tried HMRC who were as unhelpful as expected. Told to write in. I'm fully expecting to pay the underpayment for 2007/8 then get the money back for 2008/9. Jobs for the boys or what?