HMRC has been taxing me for a job I do not have for almost three years.
In March 2020 I did a half day’s work for a charity, Move On, for which I was paid £79.10. I was put on the payroll in the expectation that I would do more work there in the future. Instead, the pandemic happened and I never returned.
In early 2022, Move On transferred to a new payroll system and since then HMRC has deducted nearly £6,000 via PAYE from my subsequent job.
I’ve been unemployed for most of the current tax year and have now been asked to pay £1,722.20 on my “income” from Move On by January, which means that I have been charged £7,662.85 tax on £79.10. I have sent four years’ bank statements and a backdated P45 from Move On but HMRC still insists I pay up.
MH, Edinburgh
This is a bizarre situation made worse by apparent inaction on all sides. HMRC tells me Move On failed to mention you were no longer employed until March this year, four years after that fateful half day. Move On, meanwhile, says it contacted HMRC ‘“several times” to confirm you were not an employee, and insists it had nothing to do with its payment systems.
In the meantime, you had sent repeated complaints by various means, as HMRC acknowledges, but it turns out the “specialist teams” supposed to investigate did not get round to doing anything. HMRC says: “We apologise for not acting sooner … we’re now issuing his refund after correcting his records. We’re reviewing what happened to learn lessons for the future.”
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