Underpaid tax - can I ask for HMRC to write it off?

7 Posts

in Cutting tax
I have underpaid £240 in tax in 2018/19 ( my employer has put the wrong tax code) and I was informed I June 2021.
I read on the forum that if HMRC informs of too little taxt after 1 year I could ask for it to be written off.
Is this possible?
Do I have a chance of it being written off in my situation?
Please help the increase in cost of living doesn't make this a happy thing to do! thank you 😊
I read on the forum that if HMRC informs of too little taxt after 1 year I could ask for it to be written off.
Is this possible?
Do I have a chance of it being written off in my situation?
Please help the increase in cost of living doesn't make this a happy thing to do! thank you 😊
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Replies
Why do you think you shouldn't pay the correct amount of tax?
You've effectively had the benefit of an interest free loan.
What would you expect HMRC to do if they owed you tax and it wasn't discovered until more than a year after the end of the tax year, not refund you?
I have since found out that it was my responsibility to find out if my tax code was right though at the time I wasn't aware of it. I am finding it hard to pay due to increase in expenses.
https://www.litrg.org.uk/tax-guides/employment/what-if-i-do-not-pay-enough-tax/extra-statutory-concession-a19
Hardship
If a tax debt between £50 – £2,999.99 is to be collected through PAYE, and this will cause hardship if it is all done in a single tax year, you can ask HMRC to spread the collection over two years, or in exceptional cases, three years instead.
https://taxaid.org.uk/guides/taxpayers/tax-debt/paye
(Ha sido divertido)
thank you also for the hardship information !
(Ha sido divertido)
Totally agree with your comment
Details here....
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/366615/employer-errors-deduction-paye.pdf