Wrong tax code applied - 11/12, 12/13 - whose liability? | AccountingWEB

Wrong tax code applied - 11/12, 12/13 - whose liability?

Hi, hope someone will be able to clarify my position and provide insight on who is liable for approx £10k of tax due to a coding error.

In 2011/2012 I was on a tax code 707L despite being on a basic in excess of having any personal allowance. Hence, on filing SA, accountant identified an additional liability on the personal allowance.

In 2012/2013 I was on a tax code 808L despite being on a basic in excess of having any personal allowance. Hence, another tax liability incurred during SA. 

2011/2012 was filed late, hence, some argument that HMRC not 'aware' to issue a new tax code for 2012/2013....or?

My employer for those years was fully aware of my income situation hence, I find it absurd they would have used these tax codes. Naturally, I assume some responsibility for the error, but tax codes are not included on my pay slips so hard to spot until P60 time, and HMRC coding notification were sent to an old address.

HMRC over the phone, advised to send in a letter with P60's and P11D's for both years and they will investigate.

For 2013/14 I have been on the correct tax code for my circumstances.

Who will be liable for the underpayment for 11/12 and 12/13?  Myself or Employer? 




Thanks for all the input below - seems unanimous! HMRC asked me to write in with the key facts, dates and forms - I actually called back HMRC to make sure it would be a productive task, not a forgone conclusion. Maybe it's simple protocol.

The outstanding tax has already been paid in full, but will follow through as per HMRC advice.  

As everyone has been very helpful with their input, I'll come back tot this post to share the response from HMRC in approximately one months time. 

There are 8 comments. Login or register to view them.

How is employer liable?

Wieslaw |
Wieslaw's picture

Employer uses tax codes given

Flash Gordon |
Flash Gordon's picture

HMRC will state that you

bernard michael |

Employer not liable

taxhound |
taxhound's picture

It's your liability

Locutus |
Locutus's picture


tebthereb |
tebthereb's picture

Thanks for your reply, no

nick1098 |

It's a fair comment as

nick1098 |