K51 tax code

Droop6981

So I have a letter saying I owe 520 quid in underpayment which has only arisen sine applying for tax credits.
They want to change my code from 1074 to k51x
To me this seems wrong as between now and march they will aquire an extra 2k from me on this code.

Is this right and I'm wrong ?

Wage is 19k annually

Thanks

Caz3121

do you have any benefits in kind e.g. company car...if so this could be fixing it ongoing, in addition to collecting the amount that was underpaid

Droop6981

No. Never had company car or any benefits ever. The tax credits get paid to my wife too

Darksparkle

Your tax code was already lower than the normal code for this year, do you know why?

Does the letter not provide any explanation as to how it has been calculated?

Droop6981

Sorry 1074 was typo it's 1160 I have 60 for washing work uniform... it just says 519 underpayment for last tax year so my allowance says 0 therefore tax code will be k51x and I may owe more next year.... Can't figure our why the code is for a zero allowance when my wages will cover it more than enough.

Stand to be taxed an extra 160 quid every 4 weeks

Dazed_and_confused

Droop6981 wrote: »

Sorry 1074 was typo it's 1160 I have 60 for washing work uniform... it just says 519 underpayment for last tax year so my allowance says 0 therefore tax code will be k51x and I may owe more next year.... Can't figure our why the code is for a zero allowance when my wages will cover it more than enough.

Stand to be taxed an extra 160 quid every 4 weeks

No allowances is odd - you probably need to question this with the HMRC but are you sure you've understood things correctly regarding the underpayment? Is it underpaid income tax and if so no allowances, code K51 and salary of 19,000 would suggest you owe more like £100 not £500+.

A deduction of 519 will collect this by making you pay extra tax on £519 of your salary (519 x your normal tax rate of 20% = £103.80)

badmemory

Don't forget the loss of his personal allowance too. He will be paying tax on an extra 11600 (I think that should be 11060) plus 519 over the year. That is over £2000 extra over the year.

Droop6981

Sorry 11060.
Yeah it suggests what dazed said but with a k51 it means I'm getting taxed as bad memory said 2300 more over the year.

For owing 519 it doesn't seem right surely they would just lower the code to around the 900 mark.

I'll ring them in morning

Droop6981

Dazed... I haven't got letter to hand it was a coding summary. I don't have any allowances and it says I have underpaid 519 income tax.

jneves

Have you tried the new service that should have that information at gov.uk? I can't post a link, but if you search for "Check your Income Tax for the current year - GOV.UK" you'll find it.

Droop6981

So it was a mistake and they had doubled my income over 2 jobs.. All sorted