We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

tax code change for forecast tax underpayment 2019/20

maisie_cat
maisie_cat Posts: 2,138 Forumite
Part of the Furniture 1,000 Posts Name Dropper Academoney Grad
My husband retired in April and was paid by his company in week 8 some backpay/holiday, this resulted in some tax being paid at 40%. His full year income for the year will be £30k so none of it will be 40% band
His first pension payment was also in week 8 and the company pension applied month1/week1 to the tax. The result is that in week 8 he got the benefit of 2 lots of allowances.
This triggered HMRC to calculate that tax would be underpaid in 2019/20 and they altered his tax code. when I did payroll some years ago it was common for a code to be altered to recover prior year underpaid tax but not in year as we didn't have the monthly returns.
When we look at his personal tax page their forecast total income is correct and there are 2 tax amounts, the correct one and what will be an overpayment because they've altered his code in year.
I the code is not reversed he will overpay by £1400 this year and I don't want to fight to get it back.
Does anybody familiar with current practice know at what point HMRC will recalculate the code once it becomes clear that the in year change is wrong? I cannot find any answers on the HMRC website, we used the help to send them a question a month ago and got no response.
thank you

Comments

  • NordicNoir
    NordicNoir Posts: 457 Forumite
    Part of the Furniture 100 Posts
    I have previously just changed the expected income, only by about £5, and it has triggered the recalculation. Worth a try!
  • jimmo
    jimmo Posts: 2,287 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I had a similar problem a couple of years ago. Phoned HMRC and asked to be put on a cumulative coding. Maybe I was lucky but the HMRC person I spoke to understood what I was saying, checked the figures from their records and agreed. All sorted in a couple of minutes.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.4K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.3K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.