We have seen been a recent wave of people with P800 calculations showing unexpected underpayments.
What seems to be the cause is something along the lines of the following:
• Wages paid throughout the year along with an amount of “expenses”
• P60 shows gross pay to date correctly
• The company then submits P11D to HMRC showing expenses paid
• No P11D is given to “employee”
• P800 then shows underpayment after HMRC aggregate pay and tax details at end of year
No doubt, the workers underpayment situation could be regularised by the submission of a P87 (provided expenses legit in the first place!) – interesting though, that they seem totally unaware of the position they are in.
Can you offer any advice?
COMPANY X It does sound as though the company were allowing expenses without having a dispensation in place which means that there will be an additional liability for the workers. More worrying is that, if the bulk of the expenses were for travel and subsistence and if the umbrella company didn’t have an overarching employment contract in place then the expenses will not be allowable at all and the workers will be stuck with a bill from HMRC.