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Underpayment of tax every year.

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  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    xylophone said:
    This looks very odd - I don't think I've come across a case where HMRC didn't adjust the PA for state pension.

    OP, for how long have you been in receipt of state pension?


    I think the more likely scenario is the employer is using a standard code and not the one hmrc have issued. It was why I asked about the coding on the personal tax account. 

    OP is your employer still using 1250L even now? Or was that from last year? If it was from last year, do you still have the tax code notices from that year?
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • I have been in receipt of state pension since October 2015. My last pay slip for 03/2020 had a tax code of S1250L. My tax code notice  for 2019 to 2020 states my employment tax code should be S0T X
  • xylophone
    xylophone Posts: 45,622 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    My tax code notice  for 2019 to 2020 states my employment tax code should be S0T X

    Did you think to query this with your employer?

    It is unsurprising that you now find yourself owing tax.

    Assuming that you are intending to remain in employment, you need the standard PA adjusted for receipt of state pension and that code issued to your employer and SBR codes issued for your other sources of income.

    Do you also have savings/dividend income?

    Perhaps you should consider completing tax returns for the tax years 2015/16 onwards to help clarify  your situation?

    https://www.gov.uk/government/publications/self-assessment-tax-return-sa100

  • Is it the case that HMRC do not inform my source of income providers of the appropriate tax code required to collect the required amount of tax?
  • Is it the case that HMRC do not inform my source of income providers of the appropriate tax code required to collect the required amount of tax?
    They are informed of every code change.
  • penners324
    penners324 Posts: 3,511 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Your employer may have ignored the tax code changes, which is rather concerning. You need to speak to the payroll department about your tax code.
    What does your April pay slip say your tax code is from your employer?
  • Checked my Tax code notice for 2020/2021 and employment code is S34M, checked my payslip for April 2020 and my employer is using S1250L which I presume is the standard allowance. Will have a word when I get back to work.
  • penners324
    penners324 Posts: 3,511 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Just email them saying the tax code they are using is wrong.
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