Best way to repay underpaid tax

jonny2510

Many thanks for the replies everyone, especially Mike for "walking through this" with me.

I suspect I'm going to note the non payment on the SA, and suffer a drop in income over the 12-13 tax year.

I'm a worrier, and if I answer no to the question, I'll spend the foreseeable future waiting to be woken up in the middle of the night by a SWAT team, coming to arrest me for lying on my SA!!!!

I may ask HMRC what they suggest, though I suspect I know the answer in advance.

With regards to the interest question, yes it was to do with the PAYE rather than the SL. I'm aware the loan has incurred interest from the start, though at the moment it's a minimal amount

Thanks again everyone

Mikeyorks

jonny2510 wrote: »

I'm a worrier, and if I answer no to the question, I'll spend the foreseeable future waiting to be woken up in the middle of the night by a SWAT team, coming to arrest me for lying on my SA!!!!

There's unlikely to be any consequences from HMRC (but certainly do it that way if it makes you more comfortable). The only real potential is that SLC raise an issue. But if they don't get a transfer of cash from HMRC - I don't think they get a figure of income with which to make that assessment. I'm less sure if HMRC have a cross check between PAYE and SA - whereby they would notice a Start notice has been issued on the former, but the latter suggests not (as no employer deductions made). I doubt it.

But I would get this sorted with your employer - where the Start notice appears to have disappeared down a payroll crack.

Gas_Powered_Toothbrush

The SLC tell HMRC who has loans each year[1] - if you select 'no' on the SL box on your return, it'll just be amended back to show 'yes' a few months later and generate the same underpayment, only without the option to collect it through the code.

[1]Which leads me to assume the start notice to your employer has not been issued / been lost / been ignored by the employer.

Mikeyorks

Gas_Powered_Toothbrush wrote: »

[1]Which leads me to assume the start notice to your employer has not been issued / been lost / been ignored by the employer.

No, There was adequate detail in post #5 (before it was edited out) to clarify that's not the case. With intermittent SLC deductions being made in earlier years when, presumably, the monthly gross exceeded £1250.