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

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 😊 



Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 16,469 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    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?
  • Tpeeeee
    Tpeeeee Posts: 7 Forumite
    First Post
    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. 

  • Tpeeeee
    Tpeeeee Posts: 7 Forumite
    First Post
    Thank you for getting back to me. 


  • Tpeeeee said:
    Thank you for getting back to me. 


    You could claim ‘hardship’ 

    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


  • Tpeeeee
    Tpeeeee Posts: 7 Forumite
    First Post
    Thank you will read ! 
    thank you also for the hardship information !
  • Tpeeeee said:
    Thank you will read ! 
    thank you also for the hardship information !
    The ‘hardship’ paragraph was from the linked article.
  • Tpeeeee
    Tpeeeee Posts: 7 Forumite
    First Post
    Oh right. I haven't gone through it yet and will no doubt make sense when I do!
  • CustardApple
    CustardApple Posts: 26 Forumite
    Second Anniversary 10 Posts Name Dropper
    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
  • chrisbur
    chrisbur Posts: 4,210 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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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