Mid term coding notice change query

deeman1979 Posts: 9
Combo Breaker First Anniversary
edited 26 January at 4:52PM in Cutting tax
So... throughout the current tax year I have had a number of coding notice changes from HMRC and I am struggling to work out if they are charging me the correct tax. After the last one in December I am now in on a K tax code and getting hammered. This seems to have been as a result of the high income child benefit charge which has been an absolute nightmare over the last few years. At the beginning of the tax year they said I owed £982 in tax from an earlier year and they adjusted my tax free allowance by £2455. This calc is simple since I am a 40% tax payer 2455 * 0.4 =£982. But when the adjustments start later in the year this same calc does not work. For Example, I got another coding notice change dated July that said I now also owed £210 tax for this year. Presumably this is then taken out over the remaining 8 months of the financial year at that point. But they adjusted my tax free allowance by £751 to account for this, but £751 * 0.4  =£300.40, so now I am confused. Does anyone know exactly how these adjustments are calculated. I waited over an hour to speak to someone at HMRC yesterday and was on the phone for a total of 2 hours,  and the guy I spoke to was less than helpful and didnt fill me with any confidence. 

Any help you can offer will be very gratefully recevied. 

Cheers :)  


  • sheramber
    sheramber Posts: 18,608
    First Anniversary I've been Money Tipped! First Post Name Dropper
    £300 would be collected over 12 months but there were only 8 months left to collect the money so divide by 12 and multiply by 8.

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