HMRC & Tax Code Change
Posted: February 10th, 2024, 12:55 pm
Today I received an email from HMRC (legitimate email) stating that I have a "Tax Code Change".
It's the first time that I can remember that I've had a tax change notification part way through the year - normally I seem to think I submit my self assessment managing to ensure that the amount I owe and the timeframe in which I send it mean they can take any additional tax due by adjusting my tax code for the following tax year.
This has happened as usual for the last 10 years or so with the adjustment to the tax code generally been reflective of the prior year profit in respect of property income depending on how many allowable expenses I've had in the year.
I did my submission for 22/23 in Jul-23 and for illustrative purposes lets say it determined I owed £1.8k - which they will effectively get by adjusting my 2024/25 tax code. (This despite the narrative on the website suggesting I actually need to pay this amount by 31st Jan 2024 - but when I click into a separate box around paying tax due they tell me I owe nothing).
However, leaving all the above aside, the first thing I see when I log in is a big banner saying "We changed your tax code on 4th July 2023" - so why send me an email 8 months after this apparent change?
I checked the detail for FY24/25 and on this page they state I have underpaid tax in previous years by £4.3k.
I'm confused - how does my self assessment return for 22/23 show I owe c£1.8k (to be paid by tax code adjustment in FY23/24) but the adjustment to my tax code for 24/25 on a different page show me as now owing £4.3k.
I could try and get through to HMRC but wonder if I'm missing something obvious - I also assume that while there may be a timing difference (i.e. while I pay more tax through PAYE in 24/25) ultimately it would right itself as part of my self assessment return after the FY24/25 has ended?
I've not made any pension contributions other than through payroll. The only other complexity in my tax returns is foreign property income but that is fully declared in the country its received in and while declared on my SA it's not really material to warrant the differences.
Any musings/observations appreciated.
It's the first time that I can remember that I've had a tax change notification part way through the year - normally I seem to think I submit my self assessment managing to ensure that the amount I owe and the timeframe in which I send it mean they can take any additional tax due by adjusting my tax code for the following tax year.
This has happened as usual for the last 10 years or so with the adjustment to the tax code generally been reflective of the prior year profit in respect of property income depending on how many allowable expenses I've had in the year.
I did my submission for 22/23 in Jul-23 and for illustrative purposes lets say it determined I owed £1.8k - which they will effectively get by adjusting my 2024/25 tax code. (This despite the narrative on the website suggesting I actually need to pay this amount by 31st Jan 2024 - but when I click into a separate box around paying tax due they tell me I owe nothing).
However, leaving all the above aside, the first thing I see when I log in is a big banner saying "We changed your tax code on 4th July 2023" - so why send me an email 8 months after this apparent change?
I checked the detail for FY24/25 and on this page they state I have underpaid tax in previous years by £4.3k.
I'm confused - how does my self assessment return for 22/23 show I owe c£1.8k (to be paid by tax code adjustment in FY23/24) but the adjustment to my tax code for 24/25 on a different page show me as now owing £4.3k.
I could try and get through to HMRC but wonder if I'm missing something obvious - I also assume that while there may be a timing difference (i.e. while I pay more tax through PAYE in 24/25) ultimately it would right itself as part of my self assessment return after the FY24/25 has ended?
I've not made any pension contributions other than through payroll. The only other complexity in my tax returns is foreign property income but that is fully declared in the country its received in and while declared on my SA it's not really material to warrant the differences.
Any musings/observations appreciated.