and I thought it was just me.....
Retired early 2011, personal allowance applied to pension income. Took up part time employment Sep 2011. Stupidly didn't cotton on straight away that personal allowance was also being applied to that income. I did realise this wasn't right and called HMRC to point it out. 'Pension? what pension? the income from that has been removed from the system' (or words to that effect)
Apparently the fact I had been receiving a pension had been somehow erased as if I had changed employment rather than started something in parallel.
They sent me a demand for the £2500ish underpayment which I am now paying back on a monthly basis for the next 3 years.
I know I earned the income and should have been paying the tax on it at the time but I don't understand why I should be held responsible for what seems like someone's incompetence. I suppose it's just as well I told them when I did, a much bigger debt than the one I have now would really be painful, as it is I feel like I am working partially to pay off a tax bill I shouldn't have had in the first place if someone who cannot be held accountable had done their job properly. Don't suppose there is anything I can do about it but just thought I'd put my six penneth in to maybe re-enforce the thread and give those arriving at the same point in their lives more of a heads up that they need to try and understand what might happen.
I always just trusted tax and pay people to do the right thing, still do in a way. What a Plonker!