INCORRECT TAX CODE - UNDERPAYMENT HELP

molerat

A tax code of 846 deducting £761 per month would suggest a taxable monthly amount of around £4180.  With a tax code of 1282 and the same taxable monthly amount tax would be around £622, a difference of £139.  Something else must be in play here.  When was the tax code changed on your pay slips ?  What is the full tax code you have been given including any letters in front and after the number ?

chrisbur

SHamilton99 said:

@chrisbur - my tax deductions have gone from around £535 a month, to £761 a month. Not sure why this is happening? My only guess was it was to do with the tax code changing?

Cannot really tell anything from this.  If you could give the following details from the two payslips you are comparing we can see what is going on.
Taxable gross
Tax code/basis
Tax paid
Month number and date of payment
Taxable gross to date
Tax paid to date

SHamilton99

(Aug) 25/08
Tax code 846L
Gross pay - £2933.66
Total tax paid - £761

(Sept) 24/09
Tax code 846L
Gross pay - £2933.66
Total tax paid - £761

Y.T.D
Taxable pay £17115.61
Tax deductions £2576.20
NI - 1751.72

When compared to pre April 2021 (when this started to happen).

(March) 25/03
Tax code 1282L
Gross pay - £2547.45 (had a pay rise in May).
Total tax paid £535.45

Thanks @chrisbur

molerat

Are you talking about TAX or DEDUCTIONS ?  The numbers you are quoting are in the ballpark for the total of tax, NI and possibly student loan plan 2 / pension deductions and look right.

If so your £400 pm pay rise over Mar 21 accounts for £80 tax, £48 NI and £30+ SL / pension per month on top of the unpaid tax clawback.

chrisbur

SHamilton99 said:

My only guess was it was to do with the tax code changing?

There was something else changed as well though, you had a pay increase of just over £386.  Even if your tax code had not changed you would have paid extra tax NI and looks like student loan as molerat suggests.
The increase in gross would have increased your tax by about £77 and your NI by about £46 plus some ( about another 9% of your pay increase) for the student loan.  It is this that makes up the bulk of your increase in your deductions, the tax code change accounts for only about £72

SHamilton99

I understand what you’re saying that there might be an increase because of my pay. But why is my personal allowance lower? Surely my tax code should be 1250L (or whatever it is now)… doesn’t make any sense to me!

chrisbur

SHamilton99 said:

I understand what you’re saying that there might be an increase because of my pay. But why is my personal allowance lower? Surely my tax code should be 1250L (or whatever it is now)… doesn’t make any sense to me!

HMRC believe that in tax year 19/20 you did not pay the correct tax and you owe £800.  They have adjusted your tax code to collect this owed money.  You said in your first post " Apparently, I owe them £800 from the tax year 2019-2020. So they are taking monthly payments from my wages and that won't stop until April 2022."
If you do not believe that you owe this £800 you can put the details of HMRC calculation and details of your taxable earnings and tax paid for this tax year and someone can check it.
Please only give tax figures not total deductions as this does complicate things.