Tax allowance query

Jonty6262

Query from a novice. My tax code for this tax year 2022/23 was £13,830.00(personal + transfer of partners allowed married allowance) .But I underpaid tax for a previous year so they reduced my tax allowance by £1,049.00 to £12,781.00 to pay off what I owed.I decided to pay a lump sum to pay off the underpayment in January 2023. Does my tax allowance return to the original allowance(£13,830.00) for the whole of the 2022/23 tax year as I paid what I owed? 

Sarahspangles

The taxman was collecting that underpaid tax in instalments through your tax code, so if you also paid off the whole previous year’s underpayment as a lump sum you’ve now paid it twice.  As it’s near the end of the year you can request it back, or wait for them to notice around June time when they’ll probably send you a cheque/warrant

Your notice of coding is likely to go back to what it was before the adjustment as the collection through your tax code was a single  year change

Dazed_and_C0nfused

Jonty6262 said:

Query from a novice. My tax code for this tax year 2022/23 was £13,830.00(personal + transfer of partners allowed married allowance) .But I underpaid tax for a previous year so they reduced my tax allowance by £1,049.00 to £12,781.00 to pay off what I owed.I decided to pay a lump sum to pay off the underpayment in January 2023. Does my tax allowance return to the original allowance(£13,830.00) for the whole of the 2022/23 tax year as I paid what I owed? 

Sorry to say but there is a strong chance you have massively overcomplicated things!

Your tax code for 2023:24 shouldn't include the underpayment - you can check this on your Personal Tax Account as the code for 2023:24 will have been calculated in the last month or two.

But it's too late in the year now to get a quick refund of any tax you have overpaid for 2022:23.

You will need to wait for HMRC to review 2022:23 later this summer and then they will factor in the payment you have made and the extra tax you paid via your reduced  tax code and refund any excess.

The above assumes you haven't already had an amended tax code for 2022:23.