Incorrect Tax Code following Self Assessment

rfult0n

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?

fengirl_2

You just need to contact your tax office and give them an estimate of your income for next year.