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Tax underpayment
shack48
Posts: 4 Newbie
in Cutting tax
I have been notified of a tax underpayment for year 17/18 (just over £2k). I have questioned how this could have happened given that PAYE is applied by my employer based on coding information given to them by HMRC.
I wrote to HMRC to seek clarification. In reply they tell me that they amended my tax code based on an estimate of my earnings which did not account for any earnings above the 40% threshold. This in spite of the fact that I have paid in that bracket for the last 15 years. They state that underpayment has arisen due to the wrong code being issued and applied.
Is this my issue or their error and as such is it worth challenging their decision further.
I wrote to HMRC to seek clarification. In reply they tell me that they amended my tax code based on an estimate of my earnings which did not account for any earnings above the 40% threshold. This in spite of the fact that I have paid in that bracket for the last 15 years. They state that underpayment has arisen due to the wrong code being issued and applied.
Is this my issue or their error and as such is it worth challenging their decision further.
0
Comments
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when the tax code is changed HMRC send you a revised coding notice explaining what they have done - did you read it?
when your employer receives a code change and applies it to the next payroll your net pay amount will change from what you are used to - did you not notice and ask for an explanation?
you cannot blame everything in life on someone else0
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