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Tax demand on money not earned

Tax demand on money not earned

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My client ( a lady in her 60s) used to work for a pub in the tax year 2009-10. She earned there roughly £4k. In the year the pub changed its ownership so she was given p45 with the £4k figure shown. In the "new" company ( still the same management, place, etc) she earned £2. However the second employer declared to HMRC that she earned in this employment £6k ( we only found out when we started investigating this).

She does not have p45/p60 from that second employment. She was not given one. However she is well organized and keeps all payslips.

HMRC started chasing her for an underpaid tax for that year ( on that £4k). She was above the threshold as also had  a 3rd job.

That pub no longer exists ( superstore instead). How can she prove she did not earn the money? All wages paid into the bank but HMRC said they are not interested in that ( or payslips).

Any comments/help much appreciated!

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By mikeyban
20th Mar 2014 07:44

Everything must be done in writing and you will hit brick walls.
Firstly are you sure she did not earn the money?

Secondly was all money paid through her bank?

Write to HMRC with copy payslips and itemised bank statements and state that she did not earn the money and request at the outset the name of the manager of the department who is in charge.

Will be a fight but if stand ground and have proof should get there in the end!

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By Sherman Holter
20th Mar 2014 08:50

Is that right?

Surely the £4k is tied off anyway as you say she has a P45.  Is it not the £6k that's in question?

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By Yvonnel_b
20th Mar 2014 14:08

The first £4k is clear. The

The first £4k is clear. The second employer instead declaring £2k earned in this employment put £6k.

I think someone messed it up when the company was taken over...

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Replying to lionofludesch:
By sholman
20th Mar 2014 15:35

It is possible that the P45 should never have been issued where there is a succession in the employers and the same reference is kept. It might be useful to refer them to the Paye guidance see


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