underpayment of tax

supersaint3

Hi guys, I've read the stickies and I'll try keep within the rules here, I was just looking for a little advice. I registered last week to claim some tax credits. I was expecting a few euro from it, turns out within a few days I received a P21 PAYE balancing statement for 2007 and 2008, and I have an underpayment of nearly 2k for 2008. How did this happen?? If I ignore it will it go away? I can't afford to pay it, i was only lookin for the tax relief I hadn't claimed to make things easier and it seems i've landed in hot water?

supersaint3

ah lads seriously 47 views and no-one can help?

trad

I would say anyone with tax expertise is busy doing tax returns for their clients and don't have the down time for Boards for the moment and the rest of us are afraid to even mention the revenue

namenotavailablE

They may have made a mistake, so you need to first check that the P21's are correct eg have they either overstated your income (the income on the p21 should be the value as per your P60 and should be net of any pension you pay through your payroll) or understated your cut-off point or tax credits or treated you as a single person rather than a married person etc

If the P21's are correct, I'm afraid that ignoring it won't help- the Revenue computer is your new best friend for life....

Ticktactoe

If its a case of under payment of tax for those years revenue can implement a code forwardin option with allows u to repay this debt over a number of year to come. It basically works as an extra credit deduction and therefore u are sayin it off thru your weekly or monthly wage. I would say however that u check that the details revenue have in relation to ur employments for the years in question is correct i.e pay and tax is correctly stated from your p60s and p45s. Also query with them how this underpayment occured. It could be a case that not all ur credits were applied to ur employments.

supersaint3

thanks for the advice guys