Two million people are thought to have underpaid income tax in 2013-14
5.5 million people are estimated to have either over or underpaid income tax for 2013-14. If you have overpaid tax then HMRC will provide an automatic refund. If you have paid too little then you will be asked to pay back what you owe.
There are a number of ways to repay the tax either by an adjustment to your tax code or by a direct payment (or schedule of payments). What’s important in the first instance is that you understand the implications on your budget before you decide on the repayment method. Remember that if you respond in a timely fashion to HMRC you will have more flexibility in how and when you pay.
There are very limited circumstances in which it is possible to gain further concessions on underpayments. If you were not notified within 12 months of the end of relevant tax year and all of your tax information was up to date then you may be able to apply for the Extra Statutory Concession A19 (ESC A19) .
If you have queries about the impact of an underpayment on your tax affairs or for one of your employees then talk to Lewis Smith & Co. today. We can provide the advice you need to deal with HMRC or deal with them directly if you need.
Call us today on 01384 235549 or email firstname.lastname@example.org
Lewis Smith & Co. – Accountants for Kingswinford businesses.