Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • leboof
    • By leboof 28th Jan 12, 6:47 PM
    • 304Posts
    • 124Thanks
    leboof
    What is "underpayment restriction"?
    • #1
    • 28th Jan 12, 6:47 PM
    What is "underpayment restriction"? 28th Jan 12 at 6:47 PM
    Hi and thanks for taking the time to read my post and hopefully help!

    Can some one explain "underpayment restriction" please. I'm cofused about the word "restriction" and even more confused with HMRC's explanation.

    Is it simply underpayment of tax?

    This is why I ask:
    I earned some money from another source other than my main employer. Having declared the earnings, last year the HMRC changed my tax code to collect the tax owed on this amount. Fine.
    This year I received an even lower tax code stating I may remember I owed them money....

    BUT surely they altered my tax code to collect the money last year, so why are this saying I still owed them money?


    "underpayment restriction -£1900"

    Thank you in advance for your replies.
    Can anyone explain to me how to put a signature here?
Page 1
    • Mikeyorks
    • By Mikeyorks 28th Jan 12, 7:05 PM
    • 10,280 Posts
    • 4,684 Thanks
    Mikeyorks
    • #2
    • 28th Jan 12, 7:05 PM
    • #2
    • 28th Jan 12, 7:05 PM
    Yes the £1900 restriction is to collect an earlier year underpayment of (£1900 @ 20% =) £380.

    Can't explain the earlier coding out as it partially depends when in the year it was done and if it was a Month 1 code in order to restrict the amount collected each month. A bit of a clue might be how much the £380 relates to the original underpayment?
    If you want to test the depth of the water .........don't use both feet !
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,138Posts Today

6,044Users online

Martin's Twitter