Help October tax code change

sunrise27_2

It says he might not pay enough tax the amount they think he will owe is £254.36 sooooo confused

Dazed_and_confused

The £254 is an estimate of what the HMRC think he will owe for this year.

A calculation will probably be on its way for last year as tax is almost certainly due for that year as well. The car benefit is quite a lot so highly likely he will have been higher rate payer last year and have to pay back the Marriage Allowance.

sunrise27_2

So he could owe the £254 then some for last year and the married tax allowance ��������

sunrise27_2

This may be a stupid question but why did HMRC not realise he owed tax last year like they have done this year ? being a grown up is no fun ��

Dazed_and_confused

No, £254 for this year (estimated as only part way through the year) and some for last year. The tax due for last year will take into account losing the Marriage Allowance.

sunrise27_2

Oh that's slightly better then . Will we have the same problem next year ? And why did HMRC not realise he owed tax last year ?

sunrise27_2

Sorryi'm going to carry on this post as I'm now even more confused. My husband got a letter in the post saying we owed the tax man about £600 , then the next day that went up to just over £800 . In the same post we got two letters saying his tax code would now be £185L and then when we opened the second letter it said this would now be replaced by 35L , we rang the tax office who said that the amount he owes went up to cover the shortage he has paid this year and then they assume that he will owe again next year but if we wanted to pay £500 now then that will cover the shortfall for this year , so why if we pay now do they not assume it will happen again next year ? Also they said he is not a higher tax rate payer although he was previously told he was ? They said up until the end of January he has earnt £34000 so if by the end of March that is £40000 then you add the car benefit of just over £8500 then take off his personal tax allowance which is £11000 that doesn't put him in the higher tax bracket does it ? Unless we've got it wrong somewhere we're sooooooo confused help !!

TempUserName123

Hi,

Can I make a suggestion, can you ask HMRC to explain all of this in writing and copy the details here in the forum (obviously less the personal information!). By doing this you can set aside what you have received in the post, and hopefully you will get a full explanation, in layman's terms that is easy to follow.

It sounds like there's been a lot of adjustments, and as the current Tax year is about to end, it would be good to have this nipped in the bud before the next Tax year starts,

Hope this helps somewhat

sunrise27_2

That's a good idea I didn't realise I could do that , hubby is ringing them on Thursday , so will post when I've got more details then hopefully someone can explain it to me better than they do

Dazed_and_confused

You are getting yourself very confused. Has hubby received a P800 for 2015:16 and if so does this show some tax had to be paid at the higher rate (40%)?

If so add the tax due for 2015:16 to the £254 you already know about from this tax year (2016:17) and this total should be what is shown in the most recent tax code for next year (2017:18)

£48500 income (pay and company benefits) is most definitely putting hubbie into higher rate bracket this year.

If tax code for 2017:18 does not include marriage allowance why do you think you will owe money again for the forthcoming year?