HMRC & Tax Code Change

[the0ni0nking]

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.

[TUK020]

If it is like the notice I have received, they make an adjustment to your tax free allowance to recover the tax underpaid.
These two figures are not hte same
Using the figures you cited:
tax free allowance reduced by 4.3k
=> more tax paid 1.8k

[the0ni0nking]

If it is like the notice I have received, they make an adjustment to your tax free allowance to recover the tax underpaid.
These two figures are not hte same
Using the figures you cited:
tax free allowance reduced by 4.3k
=> more tax paid 1.8k

That would all make sense and be what I would expect if those were the circumstances. But what their website states and what I thought I'd written above is:

1. On the page where I submitted by self assessment and can now check my calculation for FY22/23, it states I owe £1.8k tax. Furthermore, it states this needs to be paid by 31st January 2024. (I assume stating this needs to be paid is incorrect).

2. I say it is incorrect as when I click on the "Pay any outstanding tax you owe" link I eventually get to a page which states "You have no tax to pay". I assume this is because their intention is to collect the tax due via a tax code adjustment in FY24/25.

3. If I click on the page "PAYE tax income overview" it states in bold at the top that they changed my tax code on the 3rd July 2023 - this therefore contradicts what they sent via email on Saturday stating that they had changed my tax code.

4. If I click into the "Check next year tab" under the PAYE menu, they're stating I will pay £5.9k more tax. However the adjustment on my tax code is based on the fact I've underpaid tax in previous years by £4.3k - that is what they are saying is underpaid tax not the movement in my tax free allowance. The adjustment to my tax free allowance is much more.

So why do I have one figure of £1.8k tax owed from point 1 above but then in point 4 it shows this as £4.3k tax owed (I'm not aware of owing tax from previous years which would prompt this difference)?

There is a separately calculated adjustment relating to my forecast property income which is broadly consistent year on year which is what I would expect.

[genou]

This may not help, but quick enough to look: if you log in to your HMRC account and follow:

Self Assessment / More details / More Self Assessment details / Tax Years

you should be able to see their calculation for previous years where you submitted returns. It may cast some light on what's going on.