Pay tax on initial return of ammendment?

Hi, I made an error on my initial tax return submitted on 12 Dec 2023 which resulted in an overestimate of tax due totalling £3600. After finding the error I submitted an ammendment which lowered the balance to £425 (elected to pay through 23/24 paye code). The ammendment has not been processed and I believe will not be processed by 31 Jan 2024, so likely I will get a fine of 5%. Should I attempt to pay the incorrect amount of £3600 to avoid the fine? Or just elect to take the fine and appeal them if/when they arrive? I see that some people on here have waited over 6 months for a repayment which I cannot afford to do.

Hi,

If the amendment to your Self Assessment tax return has not yet been processed then you will need to contact HMRC to review.

Self Assessment: general enquiries

To avoid interest and late payment penalties if you make the payment for the amended balance once the amendment is processed your payment will match and any interest and penalty charged cancelled. 

Thank you.

I assume if I elected to pay the revised amount via 24/25 paye tax code this will also avoid penalties?

Hi Athelstan,
Yes, if the Self Assessment balance is being collected in your tax code late payment penalties will not be charged.
Thank you.