PAYE underpayment

Hitsville

Hi there

I have two jobs - my main full time job, for which I receive my tax allowances, and a second part time job that I am taxed at basic rate for (20%). I've just received my P60s and it looks like my earnings from my second job have actually pushed my total earnings in 2018/19 over £45k, so I am expecting to receive a tax bill (of around £900). From what I've read online, I can expect the bill at some time before November, and Hmrc will recoup the money by adjustments to my tax code during 'the next tax year'. I'm curious to know whether this means my tax code will be adjusted mid year or from April 2020? I'm also wondering which tax code will be adjusted (for my first or second job)? I don't have an issue paying the bill, I'm just interested to know how it will be done! Anyone have any experience with this? Thanks.

unholyangel

If you're mentioning 45k as the higher rate band, its £46350 for the 18/19 year. Im assuming this is the reason you thought you'd have an underpayment?

Have you actually checked how much tax you paid versus what you should have paid? Have you checked your tax code on your main job to see if there was an adjustment to your rate band?

Hitsville

Hello, thanks for the reply, and apologies for the delay in getting back to you. I didn't actually have my P60 from my main job until today, so was guestimating the figures a bit.

The tax code from job 1 is 1185L, and from job 2 it's BR, so no adjustments have been made. I've earnt £43769.69 (and paid £6382 in tax) in job 1, and £6528.87 (and paid £1305.60 in tax) in job 2. So I reckon I do owe about £800 in underpaid tax.

I'm just curious to know when and how HMRC will want me to pay this.

Dazed_and_confused

If you are still working and paying tax they normally don't want you to pay it direct.

They will send you a calculation this summer and collect the £800 by adjusting your 2020:21 tax code.

More information here,

https://www.gov.uk/tax-overpayments-and-underpayments/if-you-owe-tax

If you still have the same tax codes (1250L replacing 1185L) then you can update your expected earnings on your Personal Tax Account on gov.uk to try and get a more upto date tax code for 2019:20.