View Full Version : The dread taxman

10-11-2007, 09:20 AM
Can't find a thread that this might fit into so MODS if you think it needs moving then 'move away' (not literally of course)

To cut a long story short I'm in receipt of an Army Pension which is being taxed at source. 6 Mths ago it came to the TMs notice that as I'm in the higher tax bracket (through my job also taxed at source) my Army Pension should have been charged at this rate to not the lower rate it has been since I left 10yrs ago.

I must also add that as my tax affairs are simple I've not had to fill in a tax form for the last 5yrs.

Now because I did not notice that my army pension was being taxed @ the lower rate and inform the TM accordingly they are chasing me for xk plus change in back taxes going back over the last 2 tax yrs. I of course cannot afford to pay this amount as I'm in a DMP.

Now after fully co-operating with the TM in Yorkshire and them finishing their investigation in late Nov 07 and stating I owe the amount (not asking me if I agree that I owe this amount) 7 day's later I get a letter from their Coventry Debt Management Police threatening me with distraint action with bailiffs being sent in if I do not pay the full amount by within the next 10days.

Its fair to say that distraint (google it) is a draconian power only available to the government & in particular the TM.

I immediately rang the number on the letter & spoke to a member of their recovery office who was less than helpful & very dismissive of my request for a stay in their action, however she agreed to my sending her my FSA and my proposals for payment, which I'm going to do today.

Has anyone got any experience with this sort of thing, how do I appeal against the original amount or keep the recovery office at bay. I'm not a tax expert & maintain though responsible for my tax affairs the TM in Yorkshire really should have informed the MoD Pensions people of the appropriate code to apply, if they had done this then I wouldn't owe the money.

Any ideas??

10-11-2007, 09:38 AM
Hi Frisp
I can't work out how you can be responsible for a tax band/ level that you are not in control of? Doesn't that make It the forces problem?

The money may be owing and you may well have to pay it but surely the pressure being put on you like this far out weighs your responsibility in the matter? :( I'm sure we can get you some good info and direction on here. :)

10-11-2007, 09:50 AM
Ouch this is not nice.

Unfortunately the rules state that we are each responsible for notifying the tax office of our income so that the correct tax code can be allotted. The onus is placed on the individual, not the employer:(

I assume your current emplyment is using up allowances at the lower rates?

If you agree the figures then I see no other way but to arrange with them for this to be paid over a period of time.

Hopefully somebody with better knowledge will come along soon.

10-11-2007, 09:58 AM
Sorry TAM I was wokring on the post when you posted, I didnt see frisp was employed so sorry it does change the posts alot :(

I've had a google regarding Army competence in pensions. Its different to your case but still an error in Taxing

An error was recognised in 1998 as a result of the efforts of an Army pensioner, Major John Perry. Major Perry deserves to be commended, as it was his efforts and persistence that brought the error to light. It is unfortunate that his early complaints were not dealt with satisfactorily. http://www.publications.parliament.uk/pa/cm200102/cmhansrd/vo020123/debtext/20123-03.htm

There was to much money taken for the pension of each person, but it is interesting that they received compensation for the Army's error.

"All those identified as being incorrectly taxed, except a small number of cases currently under investigation, have received a full refund with compensation. The Ministry of Defence has no plans to undertake further action on this matter.—[Official Report, 7 November 2001; Vol. 374, c. 250W.]

That is surreal. We have reached the circumlocution office. The payment has to be made because it was mistakenly taxed, but any amount in excess of the two years will have to be taxed because of Treasury rules. I know that the Minister will confirm that those rules do not apply, because we are considering a Government mistake. [Interruption.] It is all very well Labour Members shouting, but vulnerable people are not aware of the facts and the compensation that may be payable to them.

Just thinking it may help when someone is working on an argument for you.;)

11-11-2007, 07:35 AM
Thanks TAm & H

As TAM says we're all responsible for our own tax. The issue is not the Armies its the Taxmans as they should have informed the tax area dealing with my Army Pension of the fact that I was a higher band tax payer.

During the Yorkshire area investigation they admitted that I was not 'solely' at fault and consequently refunded 4 months of (100) penalty fines. However the key words are 'not solely' I should have noticed & had the error corrected I didn't ergo I'm a tax dodging ******** http://consumercreditsupport.co.uk/images/icons/icon12.gif
Wink (why does it do that)

I've made them an offer the trouble will arise when/if they reject it as not even the taxman can get blood out of this Scottish stone.

Al I can do is stall & muddy the proceedings with my appeal. Tks again for the help & the research.