Self Assessment Tax - Underpayment

sswinner

Hi. I filed my SA tax return on Jan 31st and had a (an unexpected....annoying personal allowance erosion) bill of £2.5k

My recollection of this is that I selected the option to repay underpaid tax through my 2012/2013 tax code and therefore didn't worry any more about it

Today, I received a letter (dated 10 February) which is a Final Reminder that I owe £2490 and that if I don't pay, debt collection action will be taken.

If I view my tax return on-line, I can't see the option now as it's just the printable version.

Did I just misinterpret the "pay through your tax code"?

I haven't received any other reminders.

Any help/advice/guidance/donations more than welcome

cheers,

System

Since you owe more than £2000 it can't be collected through the code.

http://www.hmrc.gov.uk/payinghmrc/taxcode-vdp.htm

Mikeyorks

sswinner wrote: »

Did I just misinterpret the "pay through your tax code"?

Yes. Because it is disabled after 30th December. If you file after that date you have to pay it directly.

And ..... if you dont pay it during tomorrow (28th Feb) I'm afraid a penalty of just under £125 (5%) will be added to it.