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Tax code confusion

Hi all,

I have worked at a large company for a total of nearly 6 years. I was finally offered a new, more senior position within the company last year. I have been experiencing a lot of inconsistency with tax codes and have no idea why:

My first wage for the new role was in December, which all seemed fine (tax code 1177L). 
In Jan 2021, I was underpaid around £350 and on tax code BR M1. Phoned HMRC to inform them and in Feb, my tax code was back to 1177L and amount seemed to be correct, but the underpaid amount from Jan was not repaid.
In March, my tax code was again 1177L and I received a bonus on top of my normal wage - all good.
In April, my tax code is D0 and I have been underpaid almost £400.

Could anyone shed some light on the above? I am a not a higher rate tax payer and no idea why it might have shifted to a different tax code after apparently being resolved. In addition, do you know when I should expect to receive the underpaid amounts? I intend to contact HMRC about this.

Thanks so much!

Comments

  • Marcon
    Marcon Posts: 14,087 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Hi all,

    I have worked at a large company for a total of nearly 6 years. I was finally offered a new, more senior position within the company last year. I have been experiencing a lot of inconsistency with tax codes and have no idea why:

    My first wage for the new role was in December, which all seemed fine (tax code 1177L). 
    In Jan 2021, I was underpaid around £350 and on tax code BR M1. Phoned HMRC to inform them and in Feb, my tax code was back to 1177L and amount seemed to be correct, but the underpaid amount from Jan was not repaid.
    In March, my tax code was again 1177L and I received a bonus on top of my normal wage - all good.
    In April, my tax code is D0 and I have been underpaid almost £400.

    Could anyone shed some light on the above? I am a not a higher rate tax payer and no idea why it might have shifted to a different tax code after apparently being resolved. In addition, do you know when I should expect to receive the underpaid amounts? I intend to contact HMRC about this.

    Thanks so much!
    A DO code means you have no tax free pay and all your salary will be taxed at 40%, so something is clearly adrift in quite a big way. I think contacting HRMC as soon as you can is likely to be the best idea - they are the only people who can do anything about changing your tax code (your employer can't do so without direct HMRC authorisation).
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • penners324
    penners324 Posts: 3,498 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Check your personal tax account yo start with
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