Collecting tax arrears
Tax and long-term care arrears are taken into account when calculating your effective rate.
The maximum rate than can be set depends on how many years of outstanding tax you have:
- 1 year 25%
- 2 years 30%
- 3 years or more 35%
It may be that a balancing payment at the end of the year is more appropriate, especially if you have a high proportion of income from non-employment sources (eg investment or property income) or your earnings have ceased.
Alternatively, you can set up a monthly direct debit to cover the tax from these sources of income. Just ask for a direct debit mandate from the taxes office.
You can find out more about time to pay arrangements if you're unable to pay your tax here.
Problems paying your personal tax bill