I have an employee of a client who has just been told that her 1999/2000 PAYE tax was wrong and that they want a further £600 plus interest from her.
She's a relatively low earner and this is a lot of money for her, they say that the former employer deducted the wrong amount of tax. (Employer since in liquidation)
I thought there was a piece of legislation that said if the employee had every reason to think the tax was correct, and the IR failed to correct within a reasonable time, they should waive. Can't find it now though.. Am I confusing this in my dotage with tax credits or is there something?