Med 1 and P21

So we (myself and hubby, jointly assessed) requested a P21 for 2011 and have an underpayment of 500 which we owe back to revenue.

We've paid Euro250 tax in the year 2011

Revenue advised they will offset what we owe (the 500) off credits for 2013.

So, we also have medical expenses which would bring us in 700euro.

As we only paid 250 tax, thats the max we can claim back on med 1.. Which will only serve to reduce our underpayment to 250.

My question is, if we offered to pay the revenue the underpayment due of 500 euro, say by cheque. ..Would that then mean we'd have paid 750 tax in the year, and could therefore claim back in the 700 (net) on the Med1?

Is this going to work or is there a way around this at all?

ignoring the MED1 your tax liability for 2011 is 750 euro and you have paid 250 of this already.

submit the MED1 for 2011 which will reduce the 750 euro liability.

request a P21 again.

Will it just reduce the 500 euro liability?

Or would we receive a rebate aswell?

rebate for 200 as well