Tax notification from HMRC

dartilov

I received an online message from HMRC saying I had paid too little ta in 2022/2023.  In the past, I have paid this back through my tax code being reduced in my main job.  However, this time they are asking me to pay the outstanding £ by end of January 2024 instead of the previous way.  It's less than £3k and looks like they think I do self assessment, which I have never done.  Any advice on whether they are likely to resort to the previous way and take it through PAYE or if I pay it, will I then always have to do it before January moving forward? Or is a call to them in order?

sheramber

How much tax do you normally pay for the yer?

How much is the underpyment?

An underpayment cannot be coded out if it would result in doubling the amount of tax normally deducted

SiliconChip

I've had a very similar message, the unpaid tax from 2022-23 was already being collected from my private pensions through the tax codes allocated to them, but from 5th October that was changed to make the tax codes match the gross pension amount and a request issued to pay the tax due (£146) by 31 January 2024. I rang HMRC today and the "explanation" they gave me was that they were unable to collect the tax through my tax codes (despite the fact that they'd already been doing so for the previous 5 months), and despite pointing this out the advisor was unable to clarify any further. Because the amount isn't a problem for me to pay I gave up trying to pursue it any further but I'll be looking closely at what they try to do next tax year.

It's possible that the third question asked by @sheramber is a clue to why it's being done this way, the total of my pension payments in 23/24 is less than my personal allowance, so if there was no unpaid tax to collect I wouldn't be paying anything - this is a one year only situation between ceasing to be paid a salary in July 2022 and starting to get my state pension in November 2024, so my gross pay in both 22/23 and 24/25 was/will be more than my personal allowance (not taking into account tax that is likely to be due on savings interest now that higher rates mean I'll be earning more than enough to use up all my available savings allowances, probably for this year as well as next year).

dartilov

Thanks answers below:

sheramber said:

How much tax do you normally pay for the yer? £11,852

How much is the underpyment? They are saying £1,344 for 2022/23 but it is £2,023 in total

An underpayment cannot be coded out if it would result in doubling the amount of tax normally deducted  I usually get a PA*00 and they take it out of my main employment yhrough PAYE and reduced my tax code but they habe sent me a PA392 as if I self assess but have never done.  I have an RAF pension and the tax code for that is BR.

badmemory

I suspect you will be getting a letter telling you to file self assessment as the amount of tax due is higher than £7500.   Meaning your income is over £50k.  Obviously I could be wrong & have misunderstood but I am sure someone will correct me.

sheramber

dartilov said:

Thanks answers below:

sheramber said:

How much tax do you normally pay for the yer? £11,852

How much is the underpyment? They are saying £1,344 for 2022/23 but it is £2,023 in total

An underpayment cannot be coded out if it would result in doubling the amount of tax normally deducted  I usually get a PA*00 and they take it out of my main employment yhrough PAYE and reduced my tax code but they habe sent me a PA392 as if I self assess but have never done.  I have an RAF pension and the tax code for that is BR.

I assume you mean a PA302.

This is a simple assessment used when a taxpayer is not in the self assessment system.

It is  used when an underpyment canot be coded out.

How much tax is deducted from your PAYE?  That is the figure that would be used for the 50% limit.

What do you mean by 'it is £2023 in total'.  Are there two underpayments?

HMRC instructions can be found here 
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye12070#IDAKVR0B

dartilov

I do mean a PA302, typo there.

I only have one job and one pension.  Job tax code is 545L and pension is at BR.

Simple assessment said I had underpaid in tax year 2022/2023 £1,344 bit I owed in total £2,023.  Strangely, the HMRC site says I owe nothing extra for 21/22.  Payslip says £793.12 per month income tax.

HMRC on the X platform advised to call them tomorrow as they are supposedly already taking the underpayment through my job under PAYE and the 545L.

This is the 1st time I have had a PA302 as it is usually a PA800 I get just altering my tax code.