From: "Andrew" 
Newsgroups: uk.finance
Subject: Re: Personal tax query
Date: Sat, 30 Aug 2003 21:28:13 +0000 (UTC)


"DP"  wrote in message news:3f50eb90@news.greennet.net...
> If it's a coding error that led to tax being underpaid and there is no
> dispute about the correct amount of tax payable, your best bet might be to
> ask IR to collect the tax through your next tax code. They might agree.
>
No, they won't- the amount is too high. They can code out underpayments of
several hundred pounds, but here we are talking about £2,000.

It's no use crying over spilt milk, so I think you are going to have to roll
with any penalties for late filing and payment to the current date. Get in
touch with the Collector of Taxes at either Cumbernauld/Shipley depending on
who sends the bills (Don't contact the local tax office as they will not get
involved in collection matters, nor will the local collector at this stage)
and explain the situation. Most people are surprised when they realise how
amenable the IR can be to SENSIBLE instalment payments (i.e. not 50p per
month for the next 200 years!). The official line however is that the IR is
not a loan provider, and that if you are having difficulty you should first
make efforts to borrow the money to meet your commitments- as you would be
expected to if you fell behind with other outgoings.

They will want to see details of your income and outgoings, evidence that
you have applied for (and been turned down for) credit from reasonable
sources e.g. bank and partner and they will continue to charge interest.