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PAYE Underpayment Notice 8 Years Old

PAYE Underpayment Notice 8 Years Old

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We have today received a PAYE under payment notice for a client for 2001/02 (together with one for another client for 2005/06).  These are the first notices for each client.

Is anyone else receiving such dated notices?

Can HMRC collect after 8 years? (assuming that the debt proves to be correct)?

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By justinelaws
12th Apr 2010 11:38

No?

I thought it was 6 years... seems odd!

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By Jessica's Grandad
12th Apr 2010 13:04

Late PAYE/NIC Underpayment

We have today received an underpayment notice £12k PAYE NIC and £12k paid. Interest £400- due £400. All in respect of 2000/2001

I have spoken to the Debt Management and they are bemused, given they made a repayment in 2003 on 2000/2001

They said that they would investigate.

I originally rang the number quoted on DN1P and that was pointless- no sense talking to them, one gets fobbed off.

Every day dealing with HMRC gets worse, the system is out of control.

Is it me being cynical but is this country worse than Greece and after every penny it can get!

 

 

 

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By alanlowrey.hotmail.co.uk
13th Apr 2010 10:57

Six years doesn't apply for tax purposes

The Limitation Act 1980 imposes a limit of 6 years for the recovery of a debt. However, it doesn't apply to certain debts such as tax. It does, though, apply to NICs since this (despite what we may feel) is not a tax. 

Thus, if any element of the underpayment relates to NICs, you can legitimately decline to pay that element.

 

 

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By justinelaws
13th Apr 2010 11:18

interesting!

Thats interesting!

When revenue came to me to inspect they told me they could (rather than would) go back 6 years.  Also we are only expected to hold our accounting records for 6 years.

Same thing if you wish to reclaim tax - you can only go back 6 years.

So in theory then they can go back as far as they like after all?

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By tltodman
19th Apr 2010 11:37

Don't get me started...

I've had extremely frustrating phone calls over my own tax calc from them recently.  Was due a refund for 08/09 and they sent calc saying I owed money as there was a prior year underpayment.  When I rang to query I was told it related to 03/04 but because it was over 6yrs ago they didn't have any further info.  Thankfully I did have details going back that far and could send them their own correspondence from 6 years showing why their error 6 years ago did not result in an underpayment that they had allegedly corrected and updated my records (and certainly haven't had anything from them in the 6 intervening years).

I have now received my refund, but strangely the underpayment has not yet been removed from my record.  Still awaiting the call back within "approx 12 working days".

Similar story with my mum - underpayment from 2 yrs ago, that was wrong at the time and corrected at the time, has reappeared on her tax calc - and having same battle to sort that one.

Thankfully clients all OK.

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By jivebunny
19th Apr 2010 11:51

P.A.Y.E. underpayment notices

I received two notices recently in respect of clients for whom I prepare payroll. These were for tax year 2003-4. I telephoned Accounts Office Cumbernauld and was advised that they were looking into this situation. I asked if it would be in order to ignore these notices but the reply was non - committal!

 

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By Anonymous
20th Apr 2010 17:02

Think 20 years - perhaps the employers should be very afraid?

Depends on the facts of course but employers can be pursued for underpayments of PAYE in much the same way as any taxpayer for underpayments of assessed taxes.  IIRC the time limits in TMA are applied.  See reg.80 of the PAYE regs or the PAYE manual.  (A quick search brings up http://www.hmrc.gov.uk/manuals/pommanual/PAYE54300.htm)

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