underpayment of tax

B

bor

Registered User
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41
Hi,
Just wondering does anybody know who and to what address do you pay an underpayment in tax...and should i enclose the p21's with the cheque??
Thanks
 
If Revenue have requested payment by cheque ( as opposed to reduction of tax credits) then it should normally go to the address on the P21. I would enclose copies of the P21's & a cover letter clearly indicating what is being paid and with your PPS number on the reverse of the cheque.
 
Thanks Graham,
They have not requested a cheque,they have put on the end of the p21 a reduction of tax credits over 4 years... but i would nearly prefer to pay it off in one go rather than over 4 years..should i just leave it as they have put on the p21 or send them the payment in full??
Thanks
 
When it is a PAYE underpayment there is no penalty for paying by reduction of credits. One might argue that this is the cheapest option. If they have not demanded payment by cheque but you want to pay that way I'd contact the number on the P21 and explain this to them and they will advise how to do it.
 
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