HMRC change tax code when on Mat leave - what do I do? Post Reply

[multi-multitasker]

I have a major tax issue!! For the tax year 2015/16 HMRC has changed my tax code to BR - I received notification from this when I was on mat leave and had a 6 week old at the time, so I probably didn't give it as much thought as I should have done.

I expected to have a tax liability due in Jan 2017, as HMRC have been unable to get the correct tax code for the past 5 years so thought I would see now what was due. I complete self-assessment as a higher rate tax payer and when I have recalculated the tax owed (which has been independently verified) I now have a massive tax liability and have no idea what to do!!

I have contacted HMRC, after spending 30min on hold, the not so helpful lady said that she had never seen a difference like this before and couldn't advise me further without submitting my tax return and she would get someone to call me back within 5 days.

I am just wondering if anyone else has any other experience of this when dealing with HMRC. The lady suggested there could be a repayment plan but didn't know the details. I have to say I am massively stressing and trying to work out whether to take mortgage payment holiday (if possible), take a loan, sell the car, etc and also now snapping at the family on everything they are spending.

I appreciate that I have received the benefit but this was all when I was on mat leave and reconciling my pay packet was not something I did with a newborn and therefore didn't realise I was receiving too much per month. As on mat leave my pay seemed to differ month on month anyway so it wasn't as if it was an anomaly.

Any thoughts, advice much appreciated!!!

[Janet14]

Hi, exactly the same thing happened to me and I asked them about a payment plan. It was definitely something they can do but it's with interest and you have to prove that paying it puts you in financial difficulty. I ended up paying it all at once and just having a much more frugal maternity leave but wasn't ideal! Good luck!

[Caro73]

Hello. I have experience of successfully getting these amounts actually written off by HMRC when incorrect tax codes having been issued by them - regardless that I should have been more vigilant of the new code. You can contact me by private message if you wish.

[multi-multitasker]

Thanks Janet / Caro for your response. Janet - I have a suspicion that this will have to be what I do, Caro - I will message you direct to see if I do have other options......hopefully!!