Wrong tax code last year - what happens next?

eskbanker

sparky0138 said:

eskbanker said:

If your P800 for 2023/24 shows that a modest payment (in one direction or the other) is needed then cross that bridge if/when you get to it, but in itself there's nothing to suggest that your 2023/24 tax coding is 'wrong' as such - was your 2023/24 employment income somewhere near £12,530?

My income for 23-24 was £12,941 and I paid £80.40 in tax. Given that my tax code for that year was 1253L and not 1257L, if I hadn't realised it was wrong and contacted them, would their system have been able to recognise an error and automatically generated a P800?

Have you located the breakdown of the derivation of that 2023/24 code within your online tax account?

sparky0138

Dazed_and_C0nfused said:

sparky0138 said:

eskbanker said:

If your P800 for 2023/24 shows that a modest payment (in one direction or the other) is needed then cross that bridge if/when you get to it, but in itself there's nothing to suggest that your 2023/24 tax coding is 'wrong' as such - was your 2023/24 employment income somewhere near £12,530?

My income for 23-24 was £12,941 and I paid £80.40 in tax. Given that my tax code for that year was 1253L and not 1257L, if I hadn't realised it was wrong and contacted them, would their system have been able to recognise an error and automatically generated a P800?

Assuming the £12,941 is all earnings or pension income and not interest or dividends then yes.  And no!

£12,941 gives a liability of £74.20 and as you paid £80.40 you overpaid £6.20.

If your £12,941 includes interest or dividends then the £6.20 figure will be different.

But there was a poster a few weeks/months ago who had an issue with HMRC and claimed they don't normally refund amounts less than £10 (the poster originally said £50 but clarified things with HMRC and that was wrong, but they said the £10 is correct).

But you can insist on the £6.20 being repaid even if that doesn't happen automatically.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye91045

My P60 confirms the £12,941 was just from earnings. I'd previously used an online calculator to check the difference and I must have entered a wrong figure because I thought I was due a bit more than that but I can see that's you're right and it's only £6.20.

I didn't know the rule about anything under £10 not being refunded automatically but now that I do, I'll probably just leave it. It would explain why they haven't sent me a letter or anything. The "change" to my current tax code which just stayed the same, was probably just them acknowledging that they're looked at it and there's nothing to be done.

Thanks for all the helpful posts.

sparky0138

eskbanker said:

sparky0138 said:

eskbanker said:

If your P800 for 2023/24 shows that a modest payment (in one direction or the other) is needed then cross that bridge if/when you get to it, but in itself there's nothing to suggest that your 2023/24 tax coding is 'wrong' as such - was your 2023/24 employment income somewhere near £12,530?

My income for 23-24 was £12,941 and I paid £80.40 in tax. Given that my tax code for that year was 1253L and not 1257L, if I hadn't realised it was wrong and contacted them, would their system have been able to recognise an error and automatically generated a P800?

Have you located the breakdown of the derivation of that 2023/24 code within your online tax account?

No. The only information I can find on my online tax account is a breakdown of income and tax/NI paid and the code at the end of the year.

Looking back at my wage slips my tax code was 1247L in November 2022 and then changed to 1253L in December 2022 for no discernible reason. However, because I didn't earn over that amount for that year and paid no tax, I didn't notice.