Overpayment of Tax / Tax Code Change

eliza2811

Sorry if posting in wrong bit, but I received a Tax Code Notice from HMRC today.  I am monthly paid by my employer via PAYE system.  I work full time and as such, pay NI and Tax.  The company has an accountant that sorts out the salary. I earn under £21000 per year 

So I don't understand how I can owe HMRC £88 and I definately don't understand why my tax free amount for the coming year, was £12570 and is now £12130 ( a difference of £440) to collect £88 back.  

I haven't spoken to my employer or HMRC as yet.    Any advice please.  Thanks.

nick74

The coding notice you received should tell you why you have been given this tax code. Have you changed employers in the past year or so? 

eliza2811

I've had the same employer for the last 6 and a bit years.   It says tax code 1213L replaces 1257L.  The difference being £440 .  It says 'we have therefore included an adjustment to reduce your tax free allowance by £440 so we can collect £88 tax in equal instalments'. So its paid by 5 April 2022.  The only major change is me, I got married last sept and changed surname but surely that wouldn't make a difference.   Thanks.

unholyangel

440 x 20% = £88. 

Did you have any benefits in kind or were you claiming any kind of relief that may have changed? Marriage allowance? 

Dazed_and_C0nfused

The reason your tax code allowances have been reduced by £440 is because this will mean your employer will now deduct basic rate tax on an extra £440 of your taxable wages.

This should ensure that you pay an extra £88 to clear the tax owed (440 x 20% = 88).

What you need to know is why you owe £88.  You would normally have been notified by HMRC sending you either a P800 tax calculation (for one of the years to 5 April 2020) or a revised tax code for the 2020:21 tax year.