Inland Revenue

Karrie

I wonder if someone can help.

The Inland Revenue have advised me that my employer (previous) had put me on the wrong tax code, therefore not paying enough tax. They have told me that I have to pay £40 a month for a year to clear the underpayment. Do you know if they will reduce the payment over a longer period? £40 is a lot of money which I don't think I can manage. I have just (thanks to this website) drawn up a budget plan and and determined to get myself clear but now this happened. Any advise would be greatly appreciated.

inmypocketnottheirs

How approachable are your employers. Ok so you have had the money, but they have made the mistake. Is there anyway they can help you through this, giving you a payrise maybe to cover the extra £40 per month?

Just a thought!

ctm_2

If you can't afford it being collected over one year, then write to HMRC, or ring them up and tell them that and ask for it to be collected over a longer period. They won't necessarially say yes, but if you don't ask, you don't get.

sarahlouise210

As long as you are not earning a considerable amount there should be no problem collecting over 2 years - not really worth trying for more as it is very unlikely they will agree. Say that the £40 extra tax per month will cause hardship. The only down side to asking for longer to pay is that you will not have paid off the debt until April 2008 ! Having said that there will also be no interest charges as long as the underpayment is collected through your code!;)