Late requests to code out underpaid tax
As reported previously HMRC’s online self assessment software contains a software glitch that allows taxpayers to select an option that should have been disabled on 31 December 2008. The error allows taxpayers who have a tax liability of up to £2,000 for the 2007-8 tax year to defer paying this on 31 January 2009. Instead they were being allowed to elect to have the tax collected through their 2009-10 tax code.
HMRC have now confirmed that no taxpayer will be “unfairly disadvantaged”.
It seems that HMRC’s computer will automatically correct the position to show the tax as being unpaid and outstanding at 31 January 2009. HMRC are therefore asking taxpayers who have requested that such tax be coded out during January (using HMRC’s free online filing software). HMRC will then allow the late request to code out the underpayment. Any taxpayers who do not contact HRMC will be written to after 9 February 2009 and offered the opportunity to pay the tax due through their 2009-10 tax code.