pay income tax bill through reduction in tax credits.

T

tvman

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This has probably been asked and answered here before but I can't find it using the search facility.

For a taxpayer who earns by far the largest part of their income in the paye system as an employee, but who has a small self assessed income tax bill - can this tax bill be paid through a reduction in tax credits in the following year. I've heard of this before but can't find any information on how you pay a tax bill in thus way.

Thanks

tvman
 
I was in this position - vast majority of my income PAYE with a small amount of nominal self assessed income via ESPP (Employee Share Purchase Plan) with tax paid within 30 days of exercise via Form RTSO1. I asked Revenue several times if I could come off self assessment especially since I was paying the tax immediately anyway but they always refused and insisted that I had to file a Form 11 return. The ESPP is no longer available to me since 2010 so while I still have to do a return for 2010 they also pointed me at the form to fill in to come off self assessment from now on. I think that Revenue will allow outstanding PAYE income tax liabilities to be collected by way of adjusted/reduced tax credits in certain circumstances but I don't think that they allow this for self assessed income at all. Certainly not in my own experience... :(
 
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