p800 tax notification £3.3k

dini_2

Came home to a p800 notice for underpaid tax from taxyear 2013-14
I am a bit gobsmacked to say the least.
The income they have used to calculate seems correct, but they have added in another adjustment for £2494 that isnt really explained.
The notice on the letter is :
"An underpayment for an earlier year was ncluded in your PAYE code but the actual amunt underpaid for that year was higher. This calculation includes an underpayment for an earlier year."

Thing is, I thought this was under control.
I had an underpayment of £695 from 2012-13, so I paid that back, and then when I got the p60s for 2013-2014, I worked out I had underpaid by about £1000
I have 2 jobs, 1 full time PAYE , and one bank position
My tax code for the bank position was wrong (BR)

I phoned the tax office, in a fright, and was told not to worry, the tax code would be adjusted and they would reclaim the underpayent from salary in job no 1

I got a couple of updated tax code notifcations and didn't think anything else of it.
My bank position then meant any extra shifts were paid at 40% tax so I thought it was back on track.

I can't pay £3k+ by April, and I really cant afford to have it removed from my salary. (I think thats not possible anyway due to the amound owed.)
I'm just coming to the end of a DMP (April is final payment) so after that, I will have the spare funds to repay- just a bit galling to be still in debt.
I've checked my end of year payslips for 2014/15 and tax paid looks ok. (Although clearly now it's wrong, as it should have accounted for the previous underpayment of £1k, if it had been adjusted as I thought) I had a slightly confusing year as I changed jobs with a salary increase in June 2014, so a bit harder for me to notice a mistake.
I have no objection to paying whatever tax is owed, but I just can't understand how I owe so much- 2k more than I thought.
It was too late to ring them last night, but I will try later.

Any advice??

jem16

You would need to provide figures for the tax year in question for anyone to see what's really going on. So total taxable income, tax paid and tax code for each.

dini_2

The income they have is correct, and I definitely underpaid. No question. Just from the tax calculator I should owe about 1k on that year. Which was then supposed to have been taken out of PAYE during 2014/15
Income for job 1 was £42121 and job 2 was £5471 Final Tax code on P60 was 931L and BR respectively. tax paid was £6718 and £1094

I just don't get where they got that adjustment amount of £2494
It's not explained. just "an underpayment"
2012/13 I had an underpayment of 700, which they kindly worked out for me and I paid them.
I then checked to make sure I was ok at end of 2013/14 so I wouldn't get stung.
I moved earlier this year so need to dig out previous p60s .

jem16

dini wrote: »

Income for job 1 was £42121 and job 2 was £25471 Final Tax code on P60 was 931L and BR respectively. tax paid was £6718 and £1094

So is this the total income for tax year 2013/14?

If so that would be a total taxable income of £67,592. Tax due on that would be £16,663.80. Yet you say you have paid £7812. Have you given the correct figures?

Can you also clarify - is the underpayment from 2013/14 or 2014/15?

agrinnall

There's no way the tax taken on job 2 is correct with a tax code of BR, it should be at least £4000 more than the figure you've given even if it was only taxed at 20%, and in fact a big chunk should have been taxed at 40%.

Were jobs 1 and 2 sequential or were you working two jobs at once?

dini_2

Sorry, typo, job 2 income was £5471, and both were concurrent.

jem16

dini wrote: »

Sorry, typo, job 2 income was £5471, and both were concurrent.

Ok so £851.80 underpaid. What tax year does this represent?

You need the previous tax year's figures then to see where this £2494 comes from.

dini_2

jem16 wrote: »

Can you also clarify - is the underpayment from 2013/14 or 2014/15?

The p800 form is for 2013/14
2014/15 tax totals seem to be ok as it stands, (although now i can see that it should have included the £1000 that I asked about when I received the p60 for 2013/14)

dini_2

Thanks Jem.
I have to do some digging for my previous tax paperwork.
I have had multiple conversations with HMRC in the past due to underpayment.
I did find a coding notice from 12 Feb 2013 , advising me that my tax code was 112L for 2013/14 (and I remember being very poor for a while)
I have payslips but am not sure where I have stashed the p60s for 2012/13
Will do more digging when I get home

..............................And I have just turned over the coding notice
Note 5 :
We previously told you that you owe 2494 from an earlier tax year etc etc
This obviously didn't happen. Or if it did, it didn't happen for long.
No wonder I am confused.

jem16

dini wrote: »

The p800 form is for 2013/14

The P800 form should give the figures for 2013/14 then. What are they?

Sounds like it's 2012/13 you also need to check.

dini_2

jem16 wrote: »

The P800 form should give the figures for 2013/14 then. What are they?

Sounds like it's 2012/13 you also need to check.

Figures from p800:

income 47593
tax paid 7813
total deductions 423
Personal allowance 9440
Tax chargeable on 37730
Basic Rate 6402
higher rate 2288
Total 8690
Plus other adjustments 2494.90

tax payable 11184
Under paid 3371.9