HMRC and PAYE

Cariad71

Hi all, I am just completing my self assessment tax return and I am considering the option to have my tax taken out of my pension. If I owe £1200 tax and opt for this, would they take £100 a month? I tried ringing to ask but was on hold for ages. Thanks

Dazed_and_C0nfused

Cariad71 said:

Hi all, I am just completing my self assessment tax return and I am considering the option to have my tax taken out of my pesnsion. If I owe £1200 tax and opt for this, would they take £100 a month? I tried ringing to ask but was on hold for ages. Thanks

Assuming your pension is paid monthly then yes.

It would be spread between 6 April 2023 and 5 April 2024.

There are certain limits HMRC impose so not all underpayments can be included in a tax code but most can.

sheramber

https://www.gov.uk/pay-self-assessment-tax-bill/through-your-tax-code

When you cannot pay through your tax code

You will not be able to pay your tax bill through your PAYE tax code if:

• you do not have enough PAYE income for HMRC to collect it
• you’d pay more than 50% of your PAYE income in tax
• you’d end up paying more than twice as much tax as you normally do
• you owed £3,000 or more but made a part payment to reduce the amount you owe to less than £3,000

Cariad71

Thank you both. I’ll go for that option.