Have I overpaid tax?

HCIMbtw

My P60 for 21/22 indicates an income of £54k, tax of £8,355. 

I made a SIPP contribution of £3,200 net (£4,000 gross) last year though which is not deducted from this income. 

I think I should only have paid about £7,550 tax on an effective income of about £50k. 

I speak to HMRC on the phone and they say no refund is due. 

Just wondering if I am being an idiot and missing something.. they change my tax code from 1230L to 1430L when I told them about the SIPP lump sum last year. 

DE_612183

when did your tax code change?

HCIMbtw

DE_612183 said:

when did your tax code change?

in January 2022, after I informed the HMRC of the SIPP contribution which was made in January 2022

DE_612183

I would guess then that you will have a tax code of 1430L for 2022/23 as well - have you check your personal tax account?

HCIMbtw

I don't have a personal tax account, at least haven't set one up 

I don't have 1430L tax code this year 

I don't do self assessment, because I was told that my situation was to simple and I was best just to speak to HMRC an get my tax code adjusted 

I've printed out my P60, P11d, evidence of my pension contribution and I am going to post it to them with a letter. I am just trying to check if I am misunderstanding something. But the way I see it I've quite simply overpaid by about £800, but HMRC don't think I have. 

DE_612183

everyone has a personal tax account - you logon to HMRC - if you haven't signed up - do so now as it has lots of other stuff as well as PAYE - pension years etc.

Here you will probably find your tax code for this year is also above 1230 so you will continue to pay less tax each month until the whole amount is used up, then your code will revert back to normal.

HCIMbtw

ok, so a different way of phrasing the same thing. 

I started the 21/22 year on tax code 1230L. I I earned 54032 I shoud've paid £9.1k tax. 

I paid £4k into my SIPP. 

If I earned £50,032 I should've paid £7,550 tax. 

However the HMRC changed my tax code to 1430L and I ended up paying £8,350 tax, like some weird middle ground. 

I think I should be owed the difference between £8,350 and £7,550.. but HMRC think things are right the way they are...?

DE_612183

HCIMbtw said:

ok, so a different way of phrasing the same thing. 

I started the 21/22 year on tax code 1230L. I I earned 54032 I shoud've paid £9.1k tax. 

I paid £4k into my SIPP. 

If I earned £50,032 I should've paid £7,550 tax. 

However the HMRC changed my tax code to 1430L and I ended up paying £8,350 tax, like some weird middle ground. 

I think I should be owed the difference between £8,350 and £7,550.. but HMRC think things are right the way they are...?

Have you been paid in 2022/23 - what was your tax code on that - are you paid monthly / weekly?

Dazed_and_C0nfused

Wants the increased tax code allowing the additional tax reduction from the pension contribution???

Nothing you've posted suggests a refund is due for 2021:22

HCIMbtw

DE_612183 said:

HCIMbtw said:

ok, so a different way of phrasing the same thing. 

I started the 21/22 year on tax code 1230L. I I earned 54032 I shoud've paid £9.1k tax. 

I paid £4k into my SIPP. 

If I earned £50,032 I should've paid £7,550 tax. 

However the HMRC changed my tax code to 1430L and I ended up paying £8,350 tax, like some weird middle ground. 

I think I should be owed the difference between £8,350 and £7,550.. but HMRC think things are right the way they are...?

Have you been paid in 2022/23 - what was your tax code on that - are you paid monthly / weekly?

current tax code is 1230L, paid every 4 weeks 

HCIMbtw

Dazed_and_C0nfused said:

Wants the increased tax code allowing the additional tax reduction from the pension contribution???

Nothing you've posted suggests a refund is due for 2021:22

Ok, so I'm just getting my head around my tax code being 1430L, which reflects an increase in tax free allowance of £2k. So essentially £2k tax free, rather than £4k at standard rate tax compared to higher rate. 

So essentially the tax code of 1430L was right and should wipe its face. 

But what I can't get my head around now is that £54k salary on a 1430L code pays £800 more tax than a £50k salary on a 1230L code?