tax underpayment

hamhead

hi was wondering if anyone could help with this problem i got a letter from the revenue today saying i underpaid tax in 2006 to the amount of 2500 euro and they want it paid in 30 days time would like to know if other people have the same problems if so what did they do as i do not have that kind of money just sitting around ! any comments would help thanks

marymary

I know someone who got a similar demand, and nearly had a heart attack, but turns out revenue had their sums wrong. when they did their balance statement they left out the PAYE allowance. make sure they gave you all your allowances (they are listed on the revenue website). then I think you can appeal it but you have to send in your return for that year first. good luck

gerrybbadd

Ya, as marymary says above, ensure all of your allowances are on the P21 Balancing Statement.

If the underpayment stands, you can pay it off through a reduction in your tax credits over a maximum of 4 (i think) years, which would mean your credits would be reduced by 625 per year over 4 years.

This means you'd pay an extra €12.01c in your wages every week, and pay it off this way. See below for what i mean. Hope this helps you out:)

(€2500 / 4 = €625.00)

(625 / 52 weeks = €12.01)