Underpaid Tax

[teddyboyted]

My husband is 74 and up to the middle of last year he did job working 10 hours a week. The tax are now saying he didnt pay enough tax and that he owes £674. His tax was paid through his employer so We don't feel it was his fault . However when his private pension pay slip came they have taken £200 tax . Can they take this amount all at once as it has left us very short.. Any advice would be welcome .It's almost impossible to speak to someone on the phone as the queue's are so long . Thanks for any help

[R1Geezer]

the best way is to get a tax return and fill it in for the financial year ending april 2011. Then they'll pay up if the owe you. Yes they can take it all at once. personally though I'd do the TR to get the full picture.

[teddyboyted]

Thanks will do that.

[factor-fiction]

Could it be that he was paying the right tax on his earned income but wasn't having tax taken on his pension. State pension also is taxable

[ubasses]

If you add together all his income from pensions and earnings, take away tax free allowance which would have been on his advice of tax code last April, that will leave you with the amount you need to pay tax on. Multiply this by the 20% tax rate. You will then be able to see from P60 how much he actually paid and check if the amount they have quoted is correct. From past experience if you then contact the tax office and ask them to adjust his tax code to repay over a period of time they should agree.