Unaffordable personal tax bill

sheramber

For a payment plan now the net pay that will apply now will be your net pay for 2018/19 as that is what the payments will be paid from.

You will have that figure on your April payslip.

The underpayment for 2017/18 in your 2018/19 code will be an estimate.

Once your pay and tax figures for 2017/18 is known the actual tax due for 2017/18 can be calculated.

Jamezon

This is part of my problem, hmrc have stated more than once they need an accurate figure for net pay. I will only know this for 18/19 later this month as I was awaiting a p11d from previous employment. PAYE have allowed me to spread my 17/18 debt (via my tax code) over two years. However SA have now referred their portion to a dca (ccs collect) despite being aware of the issue in determining my net pay and the timescales involved. Should I just disregard the dca and continue to attempt negotiations with dmb/ hmrc/ SA? Thanks!

antonic

Jamezon wrote: »

This is part of my problem, hmrc have stated more than once they need an accurate figure for net pay. I will only know this for 18/19 later this month as I was awaiting a p11d from previous employment. PAYE have allowed me to spread my 17/18 debt (via my tax code) over two years. However SA have now referred their portion to a dca (ccs collect) despite being aware of the issue in determining my net pay and the timescales involved. Should I just disregard the dca and continue to attempt negotiations with dmb/ hmrc/ SA? Thanks!

If the SA debt has been referred to a DCA then HMRC wont talk to you about it, they will tell you to speak to the DCA.
All the DCA are interested in is you paying the debt , or if they realise your debt is to complex then it will be sent back to HMRC.

dori2o

Have you been told that you no longer need to complete SA tax returns? If not and you are expected to complete the 17/18 return then you can ask for the underpayment in your code in respect of 17/18 to be removed.

It is not usually the case that underpayments for years where a tax return is due would be collected by tax code where the amount is still a 'potential' underpayment.

It would normally only be included in your code if the amount is less than £2999.99 and is the actual calculated amount.

So for 17/18 it would only be coded if a) the return for 17/18 is completed by 30/12/18, and is less than £2999.99. You can then ask for it to be collected via your code in the 19/20 tax year.

If however you have been told a 2017/2018 tax return is not required and have been removed from SA, then HMRC will look to recover the amount at the earliest opportunity, including via your tax code.