Change from PAYE to direct payment of Tax

[Foley]

I retired some years ago in the middle of a Tax Year and in succeeding Tax Years have been in arrears. In the present Tax Year I ticked the box on my tax form requesting a change from Paye (ie from my pensions) to direct payment. However, IR continued to deduct the tax from my two pensions and I have just received a Tax Demand for the amount which they are already collecting. It seems that I have not only caught up on my tax arrears but I am now being asked to pay twice. I would be very grateful if someone can advise on what to do. AH

[deanshepherd]

Ticking box 23.1 on the tax return does not affect arrears from previous years, it merely means that the tax you owe for the current year will not be collected via the tax code.

Also, just because amounts from prior years are being collected via your tax code, it does not necessarily mean that they will be collected in full.

If your arrears have now been settled but your tax code has not been adjusted then you can simply request that the Revenue adjust it.

You should check that all arrears have been settled before doing so.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk