Help October tax code change

sunrise27_2

Will check figures tomorrow and post on here . The tax man told him he owes £500 and the rest is an assumption for next year but this just doesn't seem right ? He also said he's not in the higher tax bracket which again doesn't seem right ? We only think we will owe money next year as the tax man seemed to think we might

Dazed_and_confused

More likely £500 for last year (2015:16) and an assumption of £254 for this year which we are in the middle of (2016:17). You yourself have already told us about this in previous post on this thread

Really cannot see how hubby could owe money for a year which hasn't even started, if the tax code was wrong for next year HMRC could simply issue a new code in time for the tax year starting in April

sunrise27_2

They have issued him a new code first 185L and then 35L both recieved on the same day ?

Dazed_and_confused

Maybe just a timing issue, I would guess 185L included the £254 tax you had already been notified of then this was replaced with the 35L code when the additional tax due for 2015:16 was included?

sunrise27_2

Still so confused lol once this is all sorted should we be back on track again ?

Dazed_and_confused

I would think so although I don't know why HMRC keep telling you hubby isn't a higher rate payer??

Maybe they forget to include his company car cause the info you have posted here seems to more than enough to show he is a higher rate payer

sheramber

sunrise27 wrote: »

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 !!

He is liable at higher rate
40,000 + 8500 = 48500

less PA 11000 = 37500

32000 @20%

5500 @40%