Non Coded Income and Self Assessment

surreytech

I have been completing self-assessment for a number of years. I have been paying the payment on account when a larger payment has been due because of fluctuations in profit and income.

Since 2018/19 tax year, when I log into HMRC website, under the PAYE section I see an entry for Non Coded Income with a figure that is close to income through dividends in the year before. Am I right in assuming that HMRC add the Non Coded Income to collect tax through PAYE? Given that I am completing self-assessment and use Payment on Account to balance the payments, shouldn't this Non Coded Income be zero?

I am worried that I end up paying more tax via PAYE on top of the higher Payment on Account, because Payment on Account doesn't take tax codes into account. Even though this will eventually be balanced in the future, I might end up paying more in the current tax year.

Thank you in advance.

BoGoF

The fact it is non coded means nothing extra is being collected via PAYE.

Dazed_and_confused

The fact it is non coded means nothing extra is being collected via PAYE.

It isn't quite that simple, in certain situations the non coded income can have an impact on the make up of the tax code.

For example if HMRC estimated the current years taxable salary to be say £30,000 and non coded income was £100,000 then I thought the Personal Allowance included in the tax code would be reduced to nil.

But in reality it probably doesn't impact the op.

surreytech

Thank you both, it makes sense now!