Self Assessment - A lot of tax to pay

Buster1874

Hello. I've just had a self assessment tax calculation on a year where I received my salary and an occupational pension, that was taxed at the wrong rate. I owe over £3k. Unfortunately I don't have that sort of money, paying maintenance to my first wife still and having two daughters at University! Like most its a struggle to make ends meet. My situation should improve markedly in the second half of the year though when my youngest daughter is no longer due for maintenace payments. What are my options with HMRC for paying back? Thanks for any help.

agrinnall

I would expect HMRC to collect the sum due from your earnings over the 12 months from April 2012 by adjusting your tax code. It's very unlikely that that you'll get anything better than that, so you will have to reduce your outgoings for the next year.

Lavendyr

HMRC tend to be hapy to reduce your tax code where the tax owed is under £2k. I guess if you owe more than this you may need to call & negotiate an arrangement with them.

Your best bet is to talk directly to them explaining the situation.

Buster1874

Thanks people..

chrismac1

I hope things work out OK when you call them. If not come back on here. Whatever happens don't be bullied into agreeing something you won't be able to stick to.

Mikeyorks

Buster1874 wrote: »

What are my options with HMRC for paying back? Thanks for any help.

The limit for coding out an underpayment is £3k - and the deadline to file, in order for coding out to happen, is 30th December (2011).

If you're outside either of those parameters then it has to be paid directly - and the due date is 31st Jan. Unless the requirement to file the Return is recent.

You need to make arrangements to pay. The detail for that is with the Statement you have? You need to get that arrangement in place before 28th Feb ...... otherwise a 5% Penalty will be added to the total owing at that date.