Income Tax Bill

Bungle250

Hello All.

A couple of weeks ago i recieved a new tax code in the post which was a lot lower than the tax code i had been using in previous years. I contacted the tax office who have now claimed that i have been underpaying them for around 6 years they are going to calculate the loss which will be around £18,000 and commence to take the repayments out of my monthly wage. Is there anthing i can do? i started my new employment 6/7 years ago and the tax office provided me with the tax code none of my circumstances have changed in the past 6 years so i just carried on thinking the tax code was ok because i did not calculate it the tax office did, if anyone can help me i would really appreciate it thankyou.

dzug1

Well the first thing to establish is whether their claim that you have being underpaying is correct. If it is, why has it come to light now? What's ir actually for?

Sounds very odd.

PlutoinCapricorn

I agree, you are entitled to be given full details by HMRC, all the more as so much money is involved and you have been in the same job for a long time.

Have you got all your P60s for the last 6/7 years? Do you understand how the Personal Allowance affects how much tax you pay each year, and that this usually mirrors your Tax Code?

If you could give some figures, you may get some suggestions about why this has happened.

System

Did you have benefits in kind which HMRC were not aware of until recently or did you have duplicate allowances at 2 or more jobs?