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Underpaid tax - can I ask for HMRC to write it off?
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Tpeeeee
Posts: 7 Forumite
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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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Comments
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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.The time frame is just one element.
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?3 -
i wasn't aware of the one year time period and i wasn't sure what other conditions are applicable. I wanted to know if can be written off as HMRC did not inform me within the time period they have stipulated and I did not ask for the loan.
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.
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Thank you for getting back to me.
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Tpeeeee said:Thank you for getting back to me.
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
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This might be worth a read,
https://www.litrg.org.uk/tax-guides/employment/what-if-i-do-not-pay-enough-tax/extra-statutory-concession-a190 -
Thank you will read !
thank you also for the hardship information !0 -
Tpeeeee said:Thank you will read !
thank you also for the hardship information !0 -
Oh right. I haven't gone through it yet and will no doubt make sense when I do!0
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Dazed_and_C0nfused said: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.The time frame is just one element.
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?
Totally agree with your comment
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OP appears not to have come back lately but just in case I would suggest that employer error in deducting PAYE would be a better option, though in my experience HMRC do seem to favour the employer when it comes to " If HMRC agree that the employer or pension payer has made an error in good faith and they have a reasonable explanation, then HMRC may direct that you should pay the under-deducted tax."
Details here....
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/366615/employer-errors-deduction-paye.pdf
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