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Where Taxpayers and Advisers Meet

Underpaid tax - unknown company

Posts: 1
Joined: Mon Feb 18, 2019 11:41 am

Underpaid tax - unknown company

Postby hydrogenet » Mon Feb 18, 2019 12:08 pm

Hi everyone,

My Mrs. has received a letter from HMRC stating she owes £108.80 of unpaid tax 3 weeks ago.

A letter dated 7th Feb has come and I quote:

"I am writing regarding the employment details that we hold on your record.

You contacted us on 26 Sep 2017 querying the employment details held on your account for S ****** Ltd. Subsequently we removed the details for this employment from tour account.

We have since received confirmation from the above employer that you were employed by them.

The employment details have therefore been re-instated"

Further letter dated 10th Feb has come through, stating she now owes £541.40.

This whole story has started in 2017 when my Mrs. received a letter from HMRC where I have discovered a company on the letter, name of which I won't be putting here and letter said that her income from that company was £2752.84 for that year and income tax paid - £117.80

It was surprising, as she has NEVER worked for that company and when I tried googling for it the only information found about this company is that it is based somewhere in Luton and is owned by one person. Of course this being suspicious I have informed HMRC of this and said she never have worked with them and knows nothing of the company in the letter, subsequently she had those details removed from HMRC and not bothered about it until this letter has come through stating that the company in question has informed HMRC that she actually was an employee of theirs.

There is no contact information found online about this company at all and when on the phone with one of the HMRC advisers I asked what proof has been provided that she was employed by the company, as I would really like to see an employment contract or any kind of paperwork where her name and signature is on it.

So far I was told on the phone that we need to send a letter to PAYE and SE with all the information of the whole situation for them to investigate this.

Is there any advice you may have for us please?

Many Thanks


Posts: 2961
Joined: Wed Aug 06, 2008 4:01 pm

Re: Underpaid tax - unknown company

Postby robbob » Mon Feb 18, 2019 1:18 pm

I was told on the phone that we need to send a letter to PAYE and SE with all the information of the whole situation for them to investigate this.
You need to do exactly as they have advise, ideally providing whatever proof you can or categorical statements - eg i would only ever get salary paid into bank account x - and it should be easily confirmed by this entity that payments have been paid to an account other than mine (presuming paid by bank).

Also advise that unless they provide contact info for company you cannot sort queries direct with that company to confirm what the situation is.

Be clear and frank that unless this company has paid cash which is unlikely you are presuming you hmrc and relevant company can prove between yourselves where funds have been paid and that isn't to you (unless that can show evidence otherwise)

In the meantime ask them to respect the taxpayers charter and not presume something is X when it may be Y, they should be well aware mixups do happen
We’ll presume that you’re telling us the truth, unless we have good reason to think otherwise.

Obviously you want to be pretty certain you haven't had any such paye income or sole trader income accidentally paid under paye - including the possibility of cashed in pension that could be mis-classified as salary - any such cash-in would be taxable as salary though

Note with regard to names these can often be misleading so a quick internet search may have taken you to the wrong organisation in that regard.

starting with details of bank account paid to seems like most logical starting place - although it could get messy if someone has the same name as you - even then the bank should be able to confirm hopefully that other details are different.

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