Underpaid income tax. Pay now or later?

[Frank Grimes]

Hi,
I have underpaid income tax, have informed the Revenue and I have since received balancing statements indicating that they will recover what is owed by reducing my tax credits over the next two years. Is this better or worse than paying what I owe directly? I have the means to do so.

FG

 

[Graham_07]

They do not charge interest on this scheme. You will pay back the same money you now owe over 2 years. (Ignoring inflation/deflation). You can pay now if you choose. Assuming your savings are on deposit earning X%, you will lose that interest on the amount used to discharge the Revenue. It's your choice.