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Restrictions on paying SATR tax via tax code

The rules for collecting SATR tax via taxpayers tax codes seem pretty complicated

I have fallen foul of misinterpreting HMRC's guidelines when it comes to requesting collection of SATR tax via the tax payers tax code.

In round sum numbers I am doing one at the moment.

Self employment income 22,000, employment income 14,500, other income (interest dividends etc) 1,000. Total tax to pay approx 6,300.

2,800 has been deducted via PAYE and 2400 paid on account. So about 1,300 left to pay.

Does requesting payment of the 1,300 via tax code meet HMRC's criteria?

The software seems to allow it but doesn't allow class 2 NI to be collected via the tax code; is this correct?

Payments on account would be made in January and July 2018 as normal.


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By Matrix
21st Nov 2017 20:33

Yes that sounds about right since the liability is less than £3,000. File before 30 December.

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By K81
22nd Nov 2017 09:19

I would say that HMRC may refuse the request to code the underpayment.
Presumably the PAYE is using the personal allowances. In that case the tax paid under PAYE will be less than the tax owed.
As far as I am aware the class 2 NIC cannot be collected through the tax code, also the payments on account wont arise if the tax owed is coded.

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