Tax underpayment from previous year

SalahMahdy

Hi,
I am doing the selfassessment and the calculations shows amount of around 418 pounds. meanwhile, when i see the PAYE page i found that they changed my tax code and put a statement under the "Underpayment from previous years" says:

This is an underpayment you owe HMRC from a previous year. Your tax code has been adjusted to collect the £3,179.57 due. and this under the "amount" section": -7,948

How when i do the selfassessment i come with only 418, and at the same time the underpayment is 3,179.57 ......

Are not they the same things? or i am looking at different things? sorry i am totally confused as it is my first time to do this.

Thanks,
Salah

SYTax

If the tax underpaid from a previous year was in your 16-17 tax code it should be in your 16-17 tax return computation.

You may not have a large liability on the return as the tax was attempted to be collected at source through your tax code.

Hope this helps.

SalahMahdy

Hi SYTax,
Thanks a lot of your feedback .... So the situation is that in 16-17 i had a fixed tax code never changed, however in April 17 i got an email saying that there is underpaid tax (equal to what around 3,000) hence they need to change the tax code in 17/18 to collect this tax., so they have been deducting from salary to collect this amount over the year.
When i started to fill in the selfassessment so they can calculated the right tax, I do not see in the application anything except my income, benefits and the tax i paid.... so i was expecting to see the 3,000 figure...however the conclusion was that the underpaid tax is only around 500 pounds.

I am just confused what each number represents? and how the numbers linked and are they different figures or same thing:)

xylophone

https://www.gov.uk/personal-tax-account

You might look at the above.

sheramber

What year is the underpayment of £3197.57 for?

if your tax code for 2017/18 was amended to included the underpayment it is unlikely the underpayment is for 2016/17

If it is for a year prior to 206/17 it wont be included in the 2016/17 calculation.

It has been coded out for 2017/18 so will be included in your 2017/18 calculation.

the underpayment arising in the 2016/17 calculation refers to that year and will be in addition to the £3197.57