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Where Taxpayers and Advisers Meet

Think tax code is wrong but don't know how to fix it online

someone
Posts:696
Joined:Mon Feb 13, 2017 10:09 am
Think tax code is wrong but don't know how to fix it online

Postby someone » Mon Sep 04, 2017 6:14 pm

I've just got a notification of my tax code (changed jobs) and I've looked on the gov.uk site but I suspect that the tax code is wrong but I cannot work out how to fix it.

HMRC estimates that I will pay 80K in tax via PAYE (actually it was originally much higher but they'd estimated my income about 100K too much!) but I estimate that I should pay closer to 90K. (Actually exactly how much tax I will pay is dependent on a (financial) year end bonus from my new employer - and I have no history to estimate that - but this year I think this doesn't make much difference as my annual allowance will have tapered down to 10K even without the bonus.

The only thing I can see is that they've given me 16136 in persional pension relief but I don't think I should get any. This year my employer contributions into my pension will use up my annual allowance. Fixing this would (I think) increase my PAYE tax by about 8K which is close enough.

But as far as I can see on the online site there's no way to change the amount of pension relief. Am I missing something obvious? I can increase the estimated salary which will increase their estimated PAYE figure but unless I actually earn the estimate then I won't pay the tax, so that's not the right way to tweak things.

It's not a huge problem - I'm going to have a 10K ish bill to pay in January due I think to similar problems last year which is why I double checked it today after getting my new tax code - but up until two years ago the tax man had always owed me 5K ish (usually due to large last minute additional pension contributions) and now suddenly it's switched to me owing the taxman but it doesn't seem to be fixing itself. I don't know why they would give me anything more than 10K pension relief given the estimated salary that they've got.

Do I have to call them to change the pension relief figure or should I be able to do it online?

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Think tax code is wrong but don't know how to fix it online

Postby AmanSood » Tue Sep 05, 2017 8:33 am

quickest way to fix your tax code is to give HMRC a call and they would send the updated tax code immediately..
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

someone
Posts:696
Joined:Mon Feb 13, 2017 10:09 am

Re: Think tax code is wrong but don't know how to fix it online

Postby someone » Wed Sep 27, 2017 7:52 pm

quickest way to fix your tax code is to give HMRC a call and they would send the updated tax code immediately..
Thank you. I did call them - although it took nearly 20 minutes trying to explain that it wasn't that my employer had applied my old tax code but that my new tax code was still wrong and she eventually gave me another new tax code.

She was a bit worried because it was an K code. I didn't know what a K code was. When I looked it up I was a bit surprised because I'd thought that a 0L code would be about right. However I've now had my first payslip with the new code applied and my back of the envelope calculation suggests that there's only going to be a discrepancy of a few K tax between what I pay in PAYE and what I will owe. There are too many unknowns to get it any closer than that.


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