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HMRC letter regarding mismatch between P45 & P14 given in self assessment

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    HMRC letter regarding mismatch between P45 & P14 given in self assessment

    I used a 'Big' Umbrella company when there was changes in IR35 rules in 2020 my client forced all contractors to use Umbrella company. I moved on from this 'Big' Umbrella and as you expect received P45 from them at the end as well. I used Income shown in P45 as Income in my self assessment. Now HMRC is saying from employer' s P14 document shows my income amount as double of what shown in P45!!!

    How this could happen? What should I do now..? I checked again and amount shown in the P45 only I shown in my self assessment.

    Any help/guidance much appreciated.

    #2
    Which is correct - the P45 or the P14? You know how much you earned from your payslips from 'Big', so presumably you can figure out what tax is owed? Have you talked to 'Big'. They may not be your employer anymore, but they still need to explain.
    Down with racism. Long live miscegenation!

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      #3
      Originally posted by Darren_Test View Post
      I used a 'Big' Umbrella company when there was changes in IR35 rules in 2020 my client forced all contractors to use Umbrella company. I moved on from this 'Big' Umbrella and as you expect received P45 from them at the end as well. I used Income shown in P45 as Income in my self assessment. Now HMRC is saying from employer' s P14 document shows my income amount as double of what shown in P45!!!

      How this could happen? What should I do now..? I checked again and amount shown in the P45 only I shown in my self assessment.

      Any help/guidance much appreciated.
      What does the paye section on your hmrc personal tax account say?

      It's hard to advise beyond that as you haven't said what hmrc is expecting you to do about it..

      merely at clientco for the entertainment

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        #4
        I would contact the umbrella and put to them what HMRC put to you and demand an explanation of the discrepancy.

        If you don’t get an acknowledgement of the discrepancy and an explanation, I would name them on here and go after them on Twitter. Big umbrellas don’t like the paying public to realise that they’re as dodgy as feck.
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

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          #5
          Originally posted by Darren_Test View Post
          I used a 'Big' Umbrella company when there was changes in IR35 rules in 2020 my client forced all contractors to use Umbrella company. I moved on from this 'Big' Umbrella and as you expect received P45 from them at the end as well. I used Income shown in P45 as Income in my self assessment. Now HMRC is saying from employer' s P14 document shows my income amount as double of what shown in P45!!!

          How this could happen? What should I do now..? I checked again and amount shown in the P45 only I shown in my self assessment.

          Any help/guidance much appreciated.
          Which tax year are HMRC querying?
          Were you with the umbrella the whole of the tax year?
          Did you have any other income that year apart from their salary? e.g. dividends, interest on savings, etc?
          Did you put any transactions through your old Ltd?
          Have you checked your tax code - both the one on your pay slips, and the one HMRC are quoting? If you switched companies and not checked, it may well be wrong.
          Have you checked your P60?
          P45 only covers the particular employment. P14/P60 also cover other income from previous employments.

          Based on your history, I suspect you're not telling us the whole story, or have embellished parts of it.
          {emotionless greeting}

          Three Word Slogan

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            #6
            I didn't think they used a P14 anymore. Didn't RTI make this redundant in 2013?

            Have you checked your Gov Gateway account to see what it says on there?
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #7
              Originally posted by northernladuk View Post
              I didn't think they used a P14 anymore. Didn't RTI make this redundant in 2013?

              Have you checked your Gov Gateway account to see what it says on there?
              Good point - the P60 is still around, even though the P14 isn't.

              Of course, it's also possible that this relates to car park charges or something unrelated.
              {emotionless greeting}

              Three Word Slogan

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                #8
                You don't use the P45 for your SATR. You're supposed to use the P60 for that.

                The P45 shows what your YTD deductions were and your tax code so the new employer knows what to set up when you start work.

                The P60 gives the total of all tax and NI deductions made for a given tax year.

                It's no wonder, as you used the wrong figures from the the wrong form on your SATR, that your entries don't match with the payroll year end figures from the umbrella.

                Numpty.
                Last edited by ladymuck; 15 September 2021, 11:10. Reason: I hate using my mobile phone on this forum, too many typos
                Click here to come to the CUK Xmas do on 10 Dec! Meet your board heroes!

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                  #9
                  Originally posted by ladymuck View Post
                  You don't use the P45 for your SATR. Your supposed to use the P60 for that.

                  The P45 shows what your YTD deductions were and your tax code so the new employer knows what to set up when you start work.

                  The P60 gives the total of all tax and NI deductions made for a given tax year.

                  It's no wonder, as you used the wrong figures from the the wrong form on your SATR that, they don't match with the payroll year end figures from the umbrella.

                  Numpty.
                  does your employer provide a P60 when you leave though?
                  I know they do at year end, but if you're not with them at year end what happens then?
                  See You Next Tuesday

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                    #10
                    Originally posted by Lance View Post

                    does your employer provide a P60 when you leave though?
                    I know they do at year end, but if you're not with them at year end what happens then?
                    You log on to the Gov Gateway. All the information is on there. Even if you don't have a P60 you can supply your accountant will all the information and they roll it up. Currently going through this with my other half who's been teaching through a number of brollys in the last tax year. Gotta say, it got really complicated but the Gov Gateway got us out of a proper mess.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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