anyone help?

WaxiesDargle

Thank you for taking the time to reply, it's appreciated Zagfles

suso

The P800 is an underpayment for 2010 - 2011 and yes the personal allowance for that year was 6475,

The P2 (notice of coding) is for the current year which is totally seperate from the tax calculation you have received. (The notice of coding is based on an estimate of your current years income, the P800 calculation is based on actual income you have received)

Although you mention that the tax code for most of 2010/2011 was 499L, it wasn't, when the thread started you mentioned that the code has just been changed from 499L to K120

On your P60 for the pension was the code being used something like 463L?

If so the reason for the underpayment is that the estimated total income was too low, your total income takes you into the higher rate band, however each source of income on its own is not enough to take you into the higher rate, so what HMRC are trying to do is collect any higher rate tax from the pension, and collect just basic rate tax on your employment, but as they do not have live access to how much you earn, then its based on an estimate of income, if it had been estimated too high, then you would be due a refund, in this case it has been estimated too low so there is an underpayment.

Next year your tax code will include BOTH underpayments.
The actual underpayment from 2010/11 of £656.00
and the estamated underpayment for 2011/12 of £564.00

xylophone

http://www.hmrc.gov.uk/rates/it.htm - for information.
It might well be worth your taking advice in respect of your tax situation as Zagfles suggests. http://www.moneysavingexpert.com/savings/how-to-pay-for-financial-advice
http://www.thisismoney.co.uk/money/experts/article-1650708/Whats-the-snag-with-salary-sacrifice-pensions.html
http://uktaxplanning.blogspot.com/2010/04/salary-sacrifice-pension-scheme-winner.html
http://www.hl.co.uk/pensions

ceeforcat

If I was to hazard a guess:

The code was adjusted in September and the estimate of the underpayment for the period from April to August was £564. I can only imagine that there was a delay in implementing this code for a month and this has meant that you have been on the old code for a further period of time resulting in an increased underpayment.

WaxiesDargle

suso you were right about both underpayments

I have just received my PAYE Coding Notice

My code for 12-13 is K846

personal allowance £8105
adjustment to tax rate bands -£10477
Underpayment restriction -£6103
=-£16580

Tax is due on -£8475

It goes on to say

You owe £1220 tax from a previous year. By reducing your tax free amount by £6103 we expect you to pay tax at 20% on an extra £6103 this year which should collect the £1220 you owe

I was under the misunderstanding then that my previous altered tax code to 499 and then K120 would have collected at least some of it

ps I'm also unsure why in September 2011 I was told tax was due on -£1217 and in January 2012 I'm told tax is due on -£8475

WaxiesDargle

I have just received yet another PAYE Coding Notice

My code for 12-13 is now not K846 but K834 and the underpayment is £1197 not £1220 as on the previous Notice

personal allowance £8105
adjustment to tax rate bands -£10477
Underpayment restriction -£5985 (not £6103 as previous)
=-£16462

Tax is due on -£8357 ( previous) £8475

I'm really not sure what this means though...

This underpayment is already being collected through your tax code during 2012.

Your PAYE code was reduced during the year and you were notified of an estimated amount underpaid. The actual amount is greater. Your PAYE code for this year will not be revised and the balance will be collected in the tax year starting 6 April and your new code will be sent to you nearer the time.
This calculation includes an underpaymenyt for a previous year

I have gone from £1220 underpayment to £1197...surely the amount is less not greater

I have tried to phone them but its taking ages