One of my client paid extra tax for the year 2008/09 and this tax deducted in the year 2011/12 through PAYE.
When I ask for refund HMRC told me that my client worked for two employers and one of the employer did not deducut the necessary tax.
But my client insist that he did not worked for this employer for the year in concern. He worked for them before than he left the job got benefits for some time than he started to a new job.
In the end HMRC said that
HMRC accepts the P14 and P35 that used to be submitted by Employers (prior to the introduction of Real Time Information) as being correct and it is what we have based this claim on.
Having looked at the P14 on e-filestore it shows all of your client's details from Name, NINo and Home address.
This Tax Year is now out of date for review so as far as we are concerned the underpayment has been correctly calculated and is therefore due and payable.
So after all those corrospondence HMRC did not accept our claim and I wonder what else I can do.
Looks like your only route (if not taken already) is to convince the employer that their submissions are incorrect and revise their Returns. For instance, if your client was working at the other end of the country or somewhere with sufficient hours that it would have been impossible to make the earnings reported. Also, if he has a P45 or other document which contradicts the P14s then the matter may be worth pursuing.
It's likely the old employer won't be very interested because it may result in a penalty for them if they do, so you're back to your client's own records. Forgive me if you've already done the following but doing so may save more time. Lay the details out in a spreadsheet table with dates to and from column headings and see if there is anywhere that your client and/or HMRC version of events can be accommodated. His insistence is only really of any use in your building this table. Leave blank rows where there are gaps in the records and query your client specifically on these. Include the dates that your client DID work for the employers so that it may be used to convince those that their Returns are incorrect.
Having built your case, you will probably need a ream of A4 letterheads at hand because it's easier for HMRC to do nothing. Complain, complain and complain.
It is now up to three years since your client began suffering the collection of short paid tax for 2008/09. By rights he should be able to show that he queried the code at that time and it counts against him if he did not do so. You'll therefore need a watertight case and it is likely that the cost in your time may approach the amount of overpaid tax:-
https://www.gov.uk/tax-tribunal
Best of luck with this if you decide to proceed and let me know how you go on.
If he can get in touch with the employer they need to help him sort it out-if they have sent information incorrectly about him they need to speak to hmrc to correct it , if not has he any proof of emp,oyment dates-p45 etc.
We have approached to the employer and as you guessed it they do not want to know.
We have all the information such as P45 s P60s but all of them consecutive and they do not contradict each other and there are no gaps.
Only missing documents are the second employers one.
HMRC of course do not want to take our word for the case they are asking for evidence and as an employee he has not got any documents to show that he did not work this employer in the year concerned.
At one occasion person on the other side of the line said that he cannot see the date of cessation and second occasion they said they have received P45 in April 2013 for the year 2008/09.
After that I had questioned this and received a letter yesterday. It states that they cannot trace the P45 so instead they have sent P14 for the year in concern. And it confirms the starting date which is corresponds with our claim but there is no cessation date on the paper.
After all these, I also spoke to Agent Account Manager but this did not got me anywhere as well. She just repeated the information whatever HMRC holds.
Only one think might contradict is working hours. First employer is one of big DIY company so if I can get the records of working hours from this company I might prove that my client was working there full time so there was no extra hours to work for second employer.
So I might persuade HMRC or take the case to tribunal.
It is a long shot and I am not sure whether it is worth to pursue.
To decide whether it is worth pursuing then forgetting the client's word for a minute; can you answer yes to these questions?
Are you personally convinced by the documentation alone that tax has been over-assessed ?
Are you completely satisfied he did not work for the employers' concerned during the years for which further tax has been sought?
If so then I would draft a letter both applying for Special Relief according to my first link and claiming Regulation 72 Employer Error for which you should read the Appeal guidance here :-
