I have received a letter from HMRC for £712.
I called them and they said my employer made a mistake in PAYE of underpaying tax for the previous tax year. I have to pay it over next year (monthly instalments).
It doesn’t sound right I have to pay for someone else’s mistake.
You are paying the right amount of tax albeit that you should have paid the £712 in the tax year 2016 / 2017. Instead you are paying it over the next 12 months. There is no additional charge or penalty; so you are not paying for the mistake. The £712 is the amount of tax that you owe and should have already paid.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.