Citizenship Due and Wrong BR Tax Code

[bunty4ILR]

Hi
I am applying for naturalisation in last week of October after completing a year on ILR. I work full time for an employer and pay the income tax and NI on my earnings through PAYE system. Couple of days ago I received a letter from HMRC notifying me that they have changed my tax code to BR because I have more than one job. This is not true, I have never worked for another employer in last 5-6 years. So I rang the Income tax helpline and spoke to one of the HMRC advisers who told that there's another company (he wouldn't give me the details) which has been sending P60s in my name since 2009, therefore HMRC thinks I have two jobs and I should pay the 20% Basic Rate (BR) tax from April 2012.
The adviser also told me that he will send out that company details in writing to my address.... not sure if someone has been using my NI no. to work or something else. Of course I am going to escalate it and will try to get to the bottom of the issue. The good thing is the HMRC would put me back on my usual tax code until this matter is investigated and resolved.
I understand that I have to submit my last 5 years P60s with my naturalisation application but Can someone please tell if this would affect my naturalisation application? Is it safe to apply for nationality or should I just hold on to it till I get this matter sorted.

thanks for your patience..... it's either something or nothing but I am panicking.

[solospy]

Hi
I am applying for naturalisation in last week of October after completing a year on ILR. I work full time for an employer and pay the income tax and NI on my earnings through PAYE system. Couple of days ago I received a letter from HMRC notifying me that they have changed my tax code to BR because I have more than one job. This is not true, I have never worked for another employer in last 5-6 years. So I rang the Income tax helpline and spoke to one of the HMRC advisers who told that there's another company (he wouldn't give me the details) which has been sending P60s in my name since 2009, therefore HMRC thinks I have two jobs and I should pay the 20% Basic Rate (BR) tax from April 2012.
The adviser also told me that he will send out that company details in writing to my address.... not sure if someone has been using my NI no. to work or something else. Of course I am going to escalate it and will try to get to the bottom of the issue. The good thing is the HMRC would put me back on my usual tax code until this matter is investigated and resolved.
I understand that I have to submit my last 5 years P60s with my naturalisation application but Can someone please tell if this would affect my naturalisation application? Is it safe to apply for nationality or should I just hold on to it till I get this matter sorted.

thanks for your patience..... it's either something or nothing but I am panicking.

You dont need to send your P60's with your application. You jst need to put in your PAYE tax reference numbers and UKBA will check it with HMRC if your tax affairs are in order i-e you dont owe HMRC any tax.

[ceem]

I think it should not be a problem at all. I had the same issue with HMRC and wrong taxcode almost every year with for the last 6 yrs. As long as there are no arrears and ongoing investigations by the HMRC, you should not face any difficulties. Best of Luck.

[bunty4ILR]

Thank you solospy, ceem and SusanjBain for your replies.... very useful information indeed.
Just thought to update that yesterday I rang HMRC again and spoke with a very pleasant and helpful gentleman. I explained to him my situation and that I was going to apply for British nationality but this disturbing BR tax code letter came out of the blue and now I feel in middle of nowhere. The gentleman put me on hold for 10 mins to go through all my tax payments through PAYE system. He then confirmed that my 810L Tax Code is now reinstated and BR has been removed - He will send this info to my 'one and only employer' and also to tell them to disregard the previous BR code request. He also confirmed that there are NO tax arrears under my NI number and nothing sinister is showing on my records. But HMRC still wants me to check that 'other' employer details upon receiving the letter and then write back to HMRC to confirm that I never worked for them.
Now I am hoping that it's all safe to apply for naturalisation.

Some of my work colleagues were reckoning this BR mess is perhaps due to the famous 2009-10 Tax Office blunder when the new PAYE IT system update resulted into losing or replicating the employment records of quite a few PAYE taxpayers.

I will still update the forum on the outcome, in case it happens to someone else.

[bunty4ILR]

Just thought to update you guys about my siatuation.
Received the second letter from HMRC with second employer details. This company is showing in my employment history since 2009 but I never even heard of its name. Soon after finding out about the company I googled its name and the results suggested that it's a limited company based in the same town where I work. Not only that employer's tax reference no. is also quite similar to my own employer's tax reference no e.g. B200/S120 and B200/SA20.

Today I rang the HMRC again and spoke with the adviser. I explained I have never worked for such company and that I am going to apply for naturalisation end of October. The adviser listened to me with patience and advised that I have nothing to worry about. She also told that HMRC will write to that other company (employer) to get further info. In the meantime my tax code will remain 810L and there are no tax arrears showing on my employement record. But she did say that this 'dispute' will remain on my records and Home Office will also see it when they'll check my tax history - she reassured me that it 'should not' harm your nationality application. She also said it looks more like a inputting error either by that other company or HMRC as both employers have quite similar tax ref no.

Now I am confused whether I should go ahead and apply for naturalisation and add a covering letter to HO explaing the situation or leave it till I hear back from HMRC and cancel my appointment with NCS end of this month!!!
Any suggestions guys??? Thanks for your time.

[Jambo]

I don't see a reason for your tax affairs to cause any issue with your application.

[bunty4ILR]

I don't see a reason for your tax affairs to cause any issue with your application.

That gives me a lot peace of mind. Thank you Jambo