Tax Code change

BaileyMoselle

This week's pay slip showed a higher amount of tax being paid by the umbrella company and the tax code had changed to d0. I have a mortgage offered and waiting on the conveyance work to complete. Need to send HMRC a letter to work out why the code has changed. Strange because the same umbrella company has been paying me for the past four years and I have no alternative income. So I have to find out the why of the tax code change. Where does this leave my mortgage offer? It was six weeks of waiting misery and I don't want to rock this boat. Do I need to tell them my tax code has changed?

Thrugelmir

You should have received a notice of coding from the HMRC which will explain how your code is calculated. Suggest you give them a call.

BaileyMoselle

Thrugelmir wrote: »

You should have received a notice of coding from the HMRC which will explain how your code is calculated. Suggest you give them a call.

No didn't receive a notice of coding. I tried calling - they are very very busy. Will write to them. It is possible they do not have my latest address, although it is indeed on my latest P60. I am sure it will be ok. Am temporarily stopping tax free pension contributions to make up the dip in take home pay, until issue is sorted. Fed up now - just want to exchange, complete and move in to the apartment.

amnblog

Have you underpaid on your tax previously?

BaileyMoselle

amnblog wrote: »

Have you underpaid on your tax previously?

No I have not, as far as I know. I have always either been PAYE or had an accountant organise tax if operating a LTD company. Have been reading about coding out to retrieve debts to the HMRC so this is a possibility. However I never received a debt notice. But then again the HMRC might not have my current address even though it appears on my last two P60s. Anyway have sent of a letter today with all my details and asking why the code change. Will soon find out. I would assume I cannot have any long outstanding debts because I wouldn't have got the mortgage offer with ccj's on my file.

TravelBugHappy

Tax code d0 means that all of your salary will be charged at 40% tax so definitely could make a difference if they ask for recent pay slips.

I've had to call HMRC recently regarding underpaid tax & if you call @ 8.30 you should get straight through - call later and you end up in a queue of over an hour x

Letter response times aren't great so I imagine it would definitely be quicker to call them x

BaileyMoselle

Oh well - have sent a letter off to HMRC to get to the bottom of it. I suspect I may have underpaid in the 2013-2014 tax year. I guess it begs the question of what chance is there that I will be asked to present yet more pay slips to the lender so soon after receiving the mortgage offer? Sod's law if that happens. I am not too bothered now. Have spent the last four years looking after my finances and saving to get to this point. If I get jinxed at the final hurdle then so be it. Pension contributions now cancelled so take home amount will not be much lower anyway. What will be will be....

BaileyMoselle

Just an update on this for those who may be in a similar situation. The HMRC had indeed made a mistake. I wrote two letters and never got replies. I tried calling and was able to connect on the twentieth attempt. This was in the morning. When I finally did connect I was talking to an advisor straight away. Always ring in the morning. The lady was quite helpful. It was an error due to the umbrella company having two different names. I will get a refund and I got a new tax code. I kept my head and thankfully it all worked out. What sort of agency is this? They can make mistakes that can seriously damage your ambitions. A whole bunch of worry and stress over absolutely nothing.