Massive tax code change - reason?!

Adventure_Dad

Evening all,

I have just received my first pay of the financial year and found my tax code has shifted dramatically from 1435L to 1269L.

in 23-24 I claimed tax back on various employment expenses (bulk of this being business mileage), this being the reason by tax code increased.

Why then have HMRC reverted back to a big standard tax code when nothing has changed going into 24-25?

thanks in advance!

Dazed_and_C0nfused

It looks like your new code possibly still includes some expenses - fixed expenses of £120 relating to your trade?

Tax code allowances 12570 +120 = 12690

HMRC do usually provisionally allow the same expenses from one year to the next but there may be a reason why this hasn't happened.

Did you change jobs during 2023-24?

BoGoF

Did you claim yourself or via an agent?

Adventure_Dad

Hi all, the standard allowance makes sense - it looks like it’s my business mileage that hasn’t been considered. Last year I submitted the details manually through HMRC myself in the hope of a refund but ultimately just upped my tax code. The year prior I did the same without issue. I have had the same job and employer for 8 years with no significant changes over the past 12 months other than receiving a small acting up allowance each month.

it looks like HMRC have simply failed to consider my mileage and if so - should I simply resubmit this for this year?

Dazed_and_C0nfused

Adventure_Dad said:

Hi all, the standard allowance makes sense - it looks like it’s my business mileage that hasn’t been considered. Last year I submitted the details manually through HMRC myself in the hope of a refund but ultimately just upped my tax code. The year prior I did the same without issue. I have had the same job and employer for 8 years with no significant changes over the past 12 months other than receiving a small acting up allowance each month.

it looks like HMRC have simply failed to consider my mileage and if so - should I simply resubmit this for this year?

I think you would be better submitting the actual details for last year and then HMRC will take that into account when reviewing 2023-24 and also use that as the estimate for 2024-25.

Bit of there will be a delay getting the info together for 2023-24 you could just update 2024-25 as an interim measure.

BoGoF

Adventure_Dad said:

Hi all, the standard allowance makes sense - it looks like it’s my business mileage that hasn’t been considered. Last year I submitted the details manually through HMRC myself in the hope of a refund but ultimately just upped my tax code. The year prior I did the same without issue. I have had the same job and employer for 8 years with no significant changes over the past 12 months other than receiving a small acting up allowance each month.

it looks like HMRC have simply failed to consider my mileage and if so - should I simply resubmit this for this year?

So whwn you submitted it manually laat year, what year did you say the claim was for?

Marcon

Adventure_Dad said:

Evening all,

I have just received my first pay of the financial year and found my tax code has shifted dramatically from 1435L to 1269L.

in 23-24 I claimed tax back on various employment expenses (bulk of this being business mileage), this being the reason by tax code increased.

Why then have HMRC reverted back to a big standard tax code when nothing has changed going into 24-25?

thanks in advance!

Not clear if you do self assessment - if not could be worthwhile.