Question on incorrect tax codes issued by HMRC

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Emily
Emily Registered Posts: 25 Epic contributor 🐘
in Tax
Hello, I have a question!
If HMRC mix up the tax code that they give to a person, i.e. mix up spouse's tax codes, and then the person ends up with a massive income tax liability as a result of this....

1. Why would HMRC try to uphold the liability and try to get the person to pay it? Surely it is their fault as the code was wrong?

2. Although the person checks their tax codes, they are not an expert on these matters and at the time did not realise that anything was incorrect.

Anyone got any info as to how one would go about getting an incorrect tax liability like this written off?!

Thanks :001_smile:

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  • Simmyluvsu
    Simmyluvsu Registered Posts: 55 Regular contributor ⭐
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    From my experience, once you inform HMRC that a tax code is incorrect they will issue a corrected tax code and what should happen (providing you're not on a week one/month one code) is that when you calculate the next salary a refund will be generated for any overpaid tax up to that point.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    ESC A19 applies to this kind of thing in certain cases.

    However, if it this for 2011-12, sadly HMRC are still in time to issue a P800 tax calculation and even though it was their fault, I don't think there is anything that can be done, short of asking them to not change interest and to spread the repayments over a few years, given that it was their fault.

    If anyone does know of anything, it would be very helpful as I also have one of these at the moment.

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