HMRC has added a link on their homepage at https://www.hmrc.gov.uk to further information regarding the PAYE under and overpayments.
The link is called ‘PAYE Tax Calculation (P800) – find out more’ and is located at the bottom of the ‘News and updates’ section.
HMRC confirms within this guidance that it will not be asking for immediate one-off payments of the underpaid tax.
Underpayments of less than £2,000 will be collected through the PAYE system from next April. In cases of genuine hardship, it may be possible to spread the payments over three years.
Where an underpayment is more than £2,000, HMRC will be writing to the individual taxpayers affected to set out how this will be recovered.
The guidance refers to the possibility of ‘writing off’ underpayments but states that it will only be possible in certain circumstances. Don’t let this put you off pursuing this option. As reported here previously, further guidance on having an underpayment written off is available from the Low Income Tax Reform Group (LITRG) at https://tinyurl.com/taxletters
HMRC states within the guidance that it will not contact anyone by telephone or email without prior written notification – so don’t give out personal information in response to an unprompted telephone call or email claiming to be from HMRC.