Personal allowance reduced

Buzzard1985

HMRC informed me on my account I owe £24 tax. So reduced my personal allowance for this year.
They have removed clothing allowance also I think.
Seems reduced allowance by £250. Can't understand this.
I was just given a rebate for last tax year.  I thought they calculate this year next year then deduct or award money where applicable for previous year.  So why detect this now and drop me £250 from personal allowance?
Thanks

Jeremy535897

If the £24 related to a withdrawn clothing allowance, it would reduce your code as follows:
£24 divided by 20% = £120 to collect underpayment
Similar amount to withdraw clothing allowance 2020/21 =£120

Total £240, which is near enough to £250.

unholyangel

There's also the possibility it's being collected over a shorter period so needs to be grossed up to a greater degree.

To collect £24 over a full 12 months you only need a deduction of £120.
To collect £24 over 9 months you need a deduction of £160
To collect £24 over 6 months you need a deduction of £240
To collect £24 over 3 months you need a deduction of £480

 This is because each month (assuming you are monthly paid), you will pay tax on 1/12th of the amount. So in the last example (over 3 months). 480/12 = 40 x 20% = £8 x 3 months = £24.

Buzzard1985

This is my tax code.  S1239LX

Now they say I owe £12.28 for this year.

[Deleted User]

Buzzard1985 said:

This is my tax code.  S1239LX

Now they say I owe £12.28 for this year.

Yes - your code is on a week 1 basis. This means that it will not apply retrospectively to the weeks already past in this tax year. So, from now until April they can only collect half of the £24 underpayment meaning that you still owe around £12.

Buzzard1985

[Deleted User] said:

Buzzard1985 said:

This is my tax code.  S1239LX

Now they say I owe £12.28 for this year.

Yes - your code is on a week 1 basis. This means that it will not apply retrospectively to the weeks already past in this tax year. So, from now until April they can only collect half of the £24 underpayment meaning that you still owe around £12.

Strange how they have removed the clothing allowance- or have they done this to reduce underpaid tax?   

oldbikebloke

Buzzard1985 said:
Strange how they have removed the clothing allowance- or have they done this to reduce underpaid tax?   

no they have not done that for that reason. they only remove an allowance because they have information which says you are not entitled to it.

they may be wrong.

if you think you are still entitled to it, then dispute it with HMRC. 

Dazed_and_C0nfused

They have removed clothing allowance also I think.

You could just check your tax code on your Personal Tax Account and get the facts.

Otherwise it's all guesswork

Buzzard1985

oldbikebloke said:

Buzzard1985 said:
Strange how they have removed the clothing allowance- or have they done this to reduce underpaid tax?   

no they have not done that for that reason. they only remove an allowance because they have information which says you are not entitled to it.

they may be wrong.

if you think you are still entitled to it, then dispute it with HMRC. 

Well I am.  Wear uniform. Shirt branded.  Standard allowance I have been claiming.  £60 I understand.
Submitted a complaint asking for full details.  Couldn't find another other means online to contact them. 

Buzzard1985

Now saying I owe £54 for last tax year.   Due to over payment of work and professional fees.  Work it says this.

You were given more tax relief on your flat rate job expenses than you should have been. You were given tax relief on flat rate job expenses of £60, but the actual amount claimed was only £0.

You might be able to claim tax relief if:

• you use your own money for things that you must buy or repair for your job, such as small tools or specialist clothing
• you only use these things for your work

Buzzard1985

Claimed £0?