wife got letter to pay £600 tax

Dazed_and_C0nfused

Looks to be,

£174.20 from a prior year

£250.00 from Marriage Allowance
£145.80 as insufficient tax deducted during 2020:21 (not too unusual when there has been a change of job or two jobs in the year)

[Deleted User]

Dazed_and_C0nfused said:

Looks to be,

£174.20 from a prior year

£250.00 from Marriage Allowance
£145.80 as insufficient tax deducted during 2020:21 (not too unusual when there has been a change of job or two jobs in the year)

It could be - but I note that the underpayment of £570 is exactly 20% of £2850 - the earnings at the second job. Was any tax deducted from this job?

molerat

aayush said:

heading of the letter says 
tax calculation for tax 2020 to 2021 you have paid to little tax  you owe HMRC £570.00
earned £15114.93 at supermart
earned £2850. at Beaut paul 
 income tax 947.00  not enough tax for that total income - should be around £1092 at 1250L, likely something got muddled in job change

allowance is £12,500

tax able income is 5464.93   = £15114.93 + £2850 - £12500

basic rate tax 20% income 6714  = £5464 + £1250 transferred allowance       income tax  1342.80 correct

plus other adjustments  £174.20        income tax  174.20 should be listed elsewhere why that is due, possibly previous years

total tax payable  £1517.00
tax paid                £947.00

you owe  HMRC  £570.00


how?
.

The only question is where did the £174.20 owed come from

chrisbur

The personal allowance for 20/21 was 12500 so with 10% deducted as the transfer we would get 11250
The total earnings were 15114 +2850 so 17964
17964 less 11250 is 6714 which at 20% is £1342.80
Actual tax deducted was £947
So £395.80 under-taxed.

With the £174.20 that makes the £570

The £174.20 appears to come from a previous year I would assume probably 19/20 

I asked the OP earlier if they could "....advise from last payslip or P60 from each job what the taxable gross, tax paid, and tax code was." If they could advise the same details for tax year 19/20 that might throw some light on the £174.20

chrisbur

purdyoaten2 said:

Dazed_and_C0nfused said:

Looks to be,

£174.20 from a prior year

£250.00 from Marriage Allowance
£145.80 as insufficient tax deducted during 2020:21 (not too unusual when there has been a change of job or two jobs in the year)

It could be - but I note that the underpayment of £570 is exactly 20% of £2850 - the earnings at the second job. Was any tax deducted from this job?

Also noticed that but thought it had to be a coincidence as if no tax was taken from the second job for the tax from the first job to be £947 that job must have taken the wrong tax.  Seemed very unlikely that both jobs would be in error.  But then was thinking what if HMRC were already correcting the error of £174.20 tax owing, perhaps due to error by job 2 in 19/20 then the 174.20 tax owing would need a correction to tax allowance of 5 times 174.20 or 871 So tax code for job 1 starts as 11250 and is reduced by 871 to become 10379   Job 1 pays 15114 less 10379 gives 4735 taxable at 20% is £947 the full tax paid for that year.
This way job 1 has done everything that it was required to do and only job 2 is doing something wrong by not deducting tax. 
This appears to account exactly for the figures given so far.

[Deleted User]

chrisbur said:

purdyoaten2 said:

Dazed_and_C0nfused said:

Looks to be,

£174.20 from a prior year

£250.00 from Marriage Allowance
£145.80 as insufficient tax deducted during 2020:21 (not too unusual when there has been a change of job or two jobs in the year)

It could be - but I note that the underpayment of £570 is exactly 20% of £2850 - the earnings at the second job. Was any tax deducted from this job?

Also noticed that but thought it had to be a coincidence as if no tax was taken from the second job for the tax from the first job to be £947 that job must have taken the wrong tax.  Seemed very unlikely that both jobs would be in error.  But then was thinking what if HMRC were already correcting the error of £174.20 tax owing, perhaps due to error by job 2 in 19/20 then the 174.20 tax owing would need a correction to tax allowance of 5 times 174.20 or 871 So tax code for job 1 starts as 11250 and is reduced by 871 to become 10379   Job 1 pays 15114 less 10379 gives 4735 taxable at 20% is £947 the full tax paid for that year.
This way job 1 has done everything that it was required to do and only job 2 is doing something wrong by not deducting tax. 
This appears to account exactly for the figures given so far.

Exactly what I was thinking. Job 1 had appropriate adjustments to collect the correct tax including any previous underpayments. However job 2 had no tax deducted from earnings of £2850 when £570 should have been deducted. That is the underpayment.

Can op confirm the code operated against second job? If it wasn’t BR we have our answer and the whole marriage allowance scenario is a red herring!

[Deleted User]

aayush said:

wife tax code is 1131N

What was the tax code operated at the second job? What tax was deducted from earnings at THAT job?