Hi
New to the forum.
I have just completed my first self-assessment for 2016-2017 whereby my annual income was £104k. This was made up of a base salary of circa £44k, bonus of £10k and £50k share options (all gross)
I realised that I might have to pay some money back back as I breached the £100k limit and this was confirmed when the GOV website stated that I owed just over £1200k. This isn't an issue.
In the process, I updated my projected income for 2017-2018 to £125k and received a notice that I had to pay back just over £3k and would lose my tax-free allowance. Fair enough as my current tax code is 105l (or something similar).
The issue I have is that they are going to take the £3k over the next 10 pay packets (I get paid fortnightly) which if I am reading this correctly means I am going to lose around £300 per pay packet.
This is a huge hit to my base salary (currently £1200 net per fortnight). After speaking to the tax office, I asked them if I could just pay the £1200 + £3000 up front and they tell me I can't and that the money needs to be taken via the tax code. Is this right ?
They have said that I can spread the £4k over the rest of this year and next year to make it a little easier but as I have some savings I would really like to have this off my back. Any suggestions would be greatly appreciated.
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