Tax office say they don't know how much Tax my son has paid, need amendment letter?

[princessbongtastic]

Hi, I'm not sure if this is the right forum, I apologise if not! The background to this problem: My son was working under the CICS Scheme (I think that's what it's called?) as a plasterer, he paid his own N.I stamp but his boss paid 22% tax from his earnings. I filled out my son's self assessment online & made a mistake (I hadn't ever done one) I didn't fill out the section about how much tax he's paid, I thought we only had to tell them what he'd earned so they could work out his rebate. Now the Tax Office say in order for him to receive his rebate we have to write a 'letter of amendment' stating how much tax my son has paid, right done to the last penny. Unfortunately he's worked for more than one company (although always in the same 'gang') & lost a lot of his paperwork (as teenagers do!) however when I asked the Tax Office if they knew how much tax he'd paid they said no, they have no record of it? I find this a little bit difficult to believe, if I put a figure in this letter of amendment how would they cross reference that amount if they have no record? If they don't have a record does anyone know how I can find out how much tax he's paid, who would I need to contact? I simply can't believe the Tax Office have no knowledge of how much tax he's paid, I could write any figure I wanted in the letter it seems. Any advice/knowledge would be reallly appreciated as he really needs this money!.. Thanks..Princess

[Conniff]

Next month is the financial year end and your son will get a P60 from his employer. That will detail exactly how much he has been paid and how much the deductions are.

[poppynurse]

Is is 08/09 tax figure you need or 07/08 - I'm guessing it's 07/08 if you've already done the tax return. Can he not find his P60s?? The other option is to contact anyone he worked for during the tax year and ask for copies or written confirmation of amount of tax paid. Lesson to be learned for your lad -keep paperwork!!!

[princessbongtastic]

Hi thanks for your replies. Yes it is 07/08 figures..I didn't think he would get a P60 as he's self employed?

[ohoh4312]

No you are right, self-employed do not get a P60.

 

The contractors he worked for should have a record of all payments made to him and tax deducted, and on request should provide you with a full breakdown. However, if this is not forthcoming - I do SA tax returns so I know the problems - then providing the deductions were standard rate tax and nothing else, you can work it back.

 

Standard rate tax deduction for self-employed in 07/08 was 20%, so if you use the following formula it should help:

 

(nett pay)*1.250 = gross pay

 

gross pay-nett pay = tax deducted

 

Any problems, please shout.

 

Best regards x

[Conniff]

I bet if you tell them he paid £23,000 they will come back with the correct figure soon enough.

[ohoh4312]

Possibly not - since the abolition of the CIS25 voucher scheme, the onus is now on the sub-contractor to keep all records relating to payments and deductions.

 

The contractor is obliged to provide a breakdown of payments and deductions at least once a month, but sadly this does not always happen. However, they (the contractors) are duty bound to retain all those records for 6 years (or is it 7? I never remember that one), so asking for a years worth should not be a problem.

[princessbongtastic]

Hi, Thanks for all of your replies...ohoh4312, thanks so much for your offer (I haven't had time to respond since, I really appreciate it!) but things have changed somewhat in the last few days & not for the better....it seems now when we go back through my son's bank statements the 'gang leader' he was working for paid him directly from his own account so he hasn't paid any tax on those earnings, my son has no way of proving he should've done either. The second, much bigger problem is that I've already added a figure to his tax return including this money so now it will show he's earnt without paying tax..(although he's still well below his personal allowance for that year) ..can I also amend his earnings in a letter of amendment (possibly saying I'd made a mistake) without any repercussions? I'm really worried so any advice would be appreciated, Thanks

Princess

 

(ohoh4312 I'm glad you like my name!!)

[ohoh4312]

OK......not so straightforward now.

 

So, my understanding is this:

 

The gang leader books x hours times y man days, eg 80 hours for 2 men.

 

HE gets paid the total, and takes the hit for the total tax, then pays your son his cut, nett of tax. Fair enough, except NO deductions are then showing against your sons NI number.

 

I will PM you later with contact details for me, as I need to have a think on this one, and it may be easier to talk to you directly.

 

xx

[princessbongtastic]

Hi ohoh4312, thanks for your reply. Yes, that is it I think except 'gang leader' is pocketting the tax money & not paying it at all. Thanks again so much for your time on this...

Princess..x