We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Incorrect Tax Code following Self Assessment
rfult0n
Posts: 9 Forumite
in Cutting tax
Following my self assessment last tax year, HMRC plan to take £844.38 tax that I owe out of next years tax code. The Coding Notice I've received says my new tax code will be 225L giving a reduction of £4221 of my personal allowance thus costing me £844.38
The issue I have is I expect to be a higher rate tax payer next year, as per the letter I'll pay 20% on the first £37,400 and 40% on anything over that. By my calculations that means by reducing my tax code I'll actually pay 40% on the reduction and so end up paying back double the tax I owe?
Is it a case of contacting the tax office or have I missed something obvious?
The issue I have is I expect to be a higher rate tax payer next year, as per the letter I'll pay 20% on the first £37,400 and 40% on anything over that. By my calculations that means by reducing my tax code I'll actually pay 40% on the reduction and so end up paying back double the tax I owe?
Is it a case of contacting the tax office or have I missed something obvious?
0
Comments
-
You just need to contact your tax office and give them an estimate of your income for next year.£705,000 raised by client groups in the past 18 mths :beer:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards