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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I uderpaid tax by over £900 how can i avoid this happening

Customer Question

i uderpaid tax by over £900 how can i avoid this happening again
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

My immediate reaction is that, if you are remunerated through PAYE arrangements, then your tax code is incorrect. PAYE does a very good job of making an employee tax neutral at the end of each year, but only if the correct code number is ***** applied. For example if you have untaxed income elsewhere eg State Benefits [taxable, but not taxed at source] and these are not taken into account in yout coding then an under payment of tax is inevitable. Moral, check your code number on each and every occasion one is issued and if it is wrong draw the ttention to the tax office which issued it and request a correction .

If you are in receipt of income which is taxable, but not taxed at source then ask the payer to deduct tax at the basic rate. You cannot do this for State Benefits, but you can force say annuity and other private pension providers to take tax into account. Many do not like doing this, it is too much of a palaver, but just persist.

As regards ***** ***** HMRC, just keep prodding away. I would call up an inquiry after about a month and so continue. It is a pain and a waste of your time, but regretably necessary. Make sure, however, that you are communicating with the correct office.

The statement of tax owing issued by HMRC might well indicate why there has been an under collection, so always peruse and keep such notifications.

I do hope that I have been able to shed some light on your situation and shown you a way forward with your problem.