Should I contact HRMC over personal allowance discrepency?

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Curls2208
Curls2208 Posts: 200 Forumite
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in Cutting tax
So the below is copied from an email I wrote to HR in work, they just got back to me and said contact HRMC.
I’ve been going through my payslips in comparison with Tax.

So just to clarify what I understand

My personal allowance is (or is meant to be) for someone my age for the following financial years according to the website.

14 – 15 - £10,000
15 - 16 - £10,600
16 - 17 -£11,000
17 - 18 - £11,500

And the tax code relates to the number multiplied by ten correct?

So going back through my old pay slips in March 2015 (end of financial year) I was on code 1006L which gives £10,060 personal allowance.

This gives an overpayment of £60 meaning I owe £60 to HRMC

In March 2016 I was on 1066L which gives £10,660 again £60 over.

Last March I was on 1063L which gives £10,630 which is £370 under.

And this year so far I’m on 1156L which gives £11,560 again £60 over.

So the way I calculate it...3 years I will have underpaid tax by £60 meaning I owe, HRMC £180. But then for 1 year I was underpaid £370 meaning that if we deduct the £180, then HRMC owe me £190.

I hope that what I’m getting at makes sense? I am really not sure if it’s you whom I would talk to or another department, but is there perhaps something in my pension that changes my Personal allowance or tax code? Or perhaps something to do with the repayment of my student loan?

It’s more out of curiosity over anything else, as I’m sure there is a valid reason, but if not then maybe the tax man owes me some money.

Thanks for taking the time to read and consider this email!

Sooooo, I just thought I'd ask you experts first if you can think of why this would be? The calculator on the main site, says I've underpaid 60 3 years and overpaid 370 one year....

Is it worth me contacting HRMC about this, or does it seem like I'm missing something to you?

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    You are way out! For example, your code this year 'should be' 1150 L - equivalent to personal allowances of 11500. You have received £11560 which means that you have received £60 too much. this means that you have underpaid (not paid tax on) £60 at 20% (or 40% if you are a higher rate taxpayer) - so £12 (or £24).

    Why is your code out by 60? Is there perhaps an allowance for fixed rate expenses such as tools, uniform etc? In this case it could be correct.

    Last year certainly looks wrong. It would appear that you have overpaid £74 (£370 at 20%) or £148 (£370 at 40%). Again this would increase by £12 or £24 if the fixed rate allowance was appropriate. I would be telephoning HMRC about this year unless you are happy to wait for them to review.
  • Curls2208
    Curls2208 Posts: 200 Forumite
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    No idea why my allowance is out by £60. No uniform, no tools. I also asked a colleague who joined the same time, and has the same role and she's on the right code. I'll get in touch with HRMC I think.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    You are confusing two different things.

    The only way your Personal Allowance can change is if you earn over £100,000.

    Your tax code number is based on whatever your tax code is made up of, so to use purdyoaten2's example personal allowance 11500 plus expenses of 60 give total allowances of 11560 which is then divided by 10 to arrive at your tax code number of 1156.

    You can check what tax code HMRC think you should be on by looking on your personal tax account on gov.uk.

    There could be millions of reasons why your tax code for 2016:17 was 1063L but the chances of it being due to a different personal allowance are slim to nothing. More likely you had a tax debt which was being collected or had company benefits.
  • dori2o
    dori2o Posts: 8,150 Forumite
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    Sign up to the online Personal tax account to look at you tax code and how it is made up
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • Pepod
    Pepod Posts: 40 Forumite
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    Dazed_and_confused wrote: »
    There could be millions of reasons why your tax code for 2016:17 was 1063L but the chances of it being due to a different personal allowance are slim to nothing. More likely you had a tax debt which was being collected or had company benefits.

    I wouldn't have thought it so rare that tax code could be different due to a different allowance? I thought there were quite a lot of allowances for different professions etc that could affect this? Certainly my own tax code is 1336L due to allowances.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    That is the point. Your code will include other allowances but it isn't 1336L because of a different Personal Allowance.

    The Personal Allowance is currently £11500 and only changes if your income goes over £100,000.

    This thread is called Should I contact HRMC over personal allowance discrepency?
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