We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

What causes a change in Tax Underpayment reduction

Afternoon All.

I've just received notification that my tax code has changed.

Logging into the website it says my Underpayment from previous year has been reduced from £3,300 to £2,274.

I've not changed jobs, or had any change of circumstances. 

What am I missing about how this underpayment occurred and what caused it to change by £1,026

Many thanks. 
Debt Free since 2020 thanks to MSEf.


Comments

  • What tax year was the underpayment from?
  • LW7
    LW7 Posts: 79 Forumite
    Part of the Furniture 10 Posts
    edited 21 September 2022 at 2:03PM
    What tax year was the underpayment from?


    Previous Tax Code was 69L and from 20/09 it's now 171L. 

    Looking into the Deductions section:

    Underpayment from previous year.
    "You underpaid £545 tax in a previous tax year"

    Previous £3,000
    Current £2,274

    Employee Health

    Previous £124
    Current £124

    Company Car

    Previous £8,329
    Current £8,329

    Total Deductions

    Previous £11,878
    Current £10,853

    Your Total tax free amoubt

    Previous £692
    Current £1,717
    Debt Free since 2020 thanks to MSEf.


  • If it's from an old tax year it could simply be that a later year has now been reviewed and you overpaid some tax meaning less is now owed?

    You can usually see this sort of information in your Personal Tax Account on gov.uk.
Meet your Ambassadors

Categories

  • All Categories
  • 347.9K Banking & Borrowing
  • 251.9K Reduce Debt & Boost Income
  • 452.2K Spending & Discounts
  • 240.3K Work, Benefits & Business
  • 616.5K Mortgages, Homes & Bills
  • 175.4K Life & Family
  • 253.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.