Help! Tax code shock!

Legacy_user

Sorry if this is in the wrong forum.

I just received a letter from HM Revenue & Customs telling me my tax code for April 2012 - 2013 will me 216L !!!! !!!!!!? My code is currently 747L. Whats going on?
Their description is that:
my personal allowance is £8105
underpayment restriction is -£5943
tax free amount of £2162 meaning 216L

chrisbur

They seem to think that you have another job or pension; if this is not the case you need to ring them up to sort it out.

whitelabel

need to contact them to confirm but sounds like they think you have been underpaying tax in previous years and they will be reclaiming it over the next year

are you PAYE or Self employed ?
have you have any changes to salary or earning in past year, or have you completed a self assessment ?

hr9hr9

Similar to my husbands, they seem to think he has a 2nd job

We will be contacting them to rectify Monday!

Dreams777

Would you have been receiving Tax Credits and they are saying you were overpaid? Happened to me once but we agreed for them to be paid back monthly over a year.

withabix

RedEye2008 wrote: »

Sorry if this is in the wrong forum.

I just received a letter from HM Revenue & Customs telling me my tax code for April 2012 - 2013 will me 216L !!!! !!!!!!? My code is currently 747L. Whats going on?
Their description is that:
my personal allowance is £8105
underpayment restriction is -£5943
tax free amount of £2162 meaning 216L

What do the explanatory notes on the back say about the reason for the underpayment restriction?

They appear to be recovering either £1188 or £2376 underpaid tax (at 20% or 40% rates respectively).

mrsyardbroom

They're collecting underpaid tax through the PAYE code. Did you go into a higher rate band? it could be that you were paying tax at the basic rate when it should have been at the higher rate.

System

thanks for all your responses, I had two full time jobs. One nighttime and one day time sleeping in between shifts for over a year.
The job that paid the most was on a BR code so I had that changed. And they refunded me £400 a while later. They were taking close to £800 tax away from me per month for a year and a half, so I'm shocked as to why I could owe them money still.

I will call them tomorrow. If it turns out that I really do owe them and there isnt a mistake, is it best to keep this new tax code or arrange some sort of other payment?
I really dont want to end up getting short changed 12 months later because they decide to do another confusing calculation.

System

also, I wasnt claiming any tax credits, and I'm not too sure if I passed the 40% tax threshold. When i started my second job, that threshold was about £40,000pa. It looks like a year later it was reduced too £35,000pa. So its probably likely that I did.