8 pence

Are you sure they specifically asked for the money or did they just let you know what transactions there's been and the balance?

There's different ways to do payroll which may result in a few pence differences.

Do you not have any other income or expenditure that reduces your tax?

If they did that to me, I'd probably send them a 10p piece, just to mess with them.

5p+2p coin more like. Send via special delivery/courier (put the cost on your tax return)

8p is well below the de minimus for charging intrest or payment recovery. I would just leave it until next year, or request it be written off.

They may well then send you a statement showing 7p received, balance due 1p.

I prefer the idea of sending them 10p and expecting them to send you

3p back!

They have sent me a giro and a SAE to send it back to them in, together with payment. :-)

But as I said, they have said I can not pay it but interest will then accrue.

Nope. This was kicked off due to me filling a self-assessment tax return, my last after giving up self-employment and getting a "proper job" 2 years back, and my only income last year was from the job.

I like that idea too!

I am just astonished they have not written it off, especially as we have agreed that I am not to receive any more self-assessment tax returns and will now be paying all my tax PAYE, simply because it would have been cheaper than chasing me for it into eternity.

Or can they just add it to my PAYE tax - ie change my tax code?

No, because £10 is the smallest amount they can add to a tax code due to the way the rounding rules work.

Actually I thought =THE TAX ON= £10 was the smallest they could add? I.e. anywhere from £1 to £4, depending.

So my choice is to pay it now or they will have to send me a statement every year until the interest brings the level up to £10?

It's too small to add to your tax code, and you are right it sould have automatcally been written off. I would call HMRC and ask if it's worth your and their administrive burden in paying this small amount and could they just write it off as it's not worth them receiving a cheque and paying someone £8+ per hour to process the cheque.

I'm sure if you manage to speak to someone with a bit experience they will write it off.

And the phone call will cost you more than 8p

£10 is what gets added to the tax code. The tax thereon is what gets collected as a result of this.

So let it accrue. In two years' time, you might end up owing them 9p.

0845 - local call rate, call after 6 and could be as low as 1p a min

Why not 2p?

How much could you earn in the time it took to make the call?

They'll have either all gone home by then, or they'll be playing "hunt the data disc" in the office with the 'phones turned off.