Underpaying on Tax help!!!

skinto_1

Hi guys just looking for some views on best thing to do regarding my underpayment of tax.

To cut a long story short, my tax code was changed a few years back to take account of the business miles i was doing at the time, for the past 3 years my business miles have drastically reduced and in the last year have almost been nil, however my tax code has remained the same (i.e is if i was still doing alot of business miles)

I have not worked out the excat figures as yet, but reckon i have roughly underpaid by about 2-3k, to date the tax man has not picked me up on this however i am obviously wary that they do and i am hit with a big bill through the door.

I have been toying with the idea of phoning to change my tax code and telling them, as from next year i will permantly based in the office and will not be doing any business miles and could they change my code accordingly,(this would avoid the big bill coming through the door and also eventually pay back the underpayments i have made, as i will still be doing some business miles and not claiming the relief) i am however worried that if i do this they will look into my file and notice that i have been in the wrong code for the last 3 years.

Anyone have any expeirance of this or advice on the likleyhood of them reviewing my file if i do phone to change my tax code.

Any help would be much appreciated.

Cheers

Mikeyorks

skinto_1 wrote: »

Anyone have any expeirance of this or advice on the likleyhood of them reviewing my file if i do phone to change my tax code.

It's virtually certain they will require updated details of your mileage from the date of the original claim. As things stand the level of underpayment is such they may (if you've calculated on the upper side) agree to recover it via your Code.

If you continue to let it accrue .... it will be a lump sum repayment with interest accruing if you let it go past the due date they will set.

skinto_1

Thanks Mikeyorks,

I am on holiday during xmas & new year and will do the proper calculations then and work out exactly what i owe, however the £3k is definetly on the high side and will be no more than that.

Was hoping they would just accept that i now no longer require to do buisness milage, be happy that i informed them and reduced the amount of my tax free allownace and not bother to check the details from my previous years travelling, suppose that was never going to happen!:rotfl: