Tax free allowance cut

jsf11

I've just had a letter through from HMRC about my tax code changing and it seems to suggest that my tax free allowance is going down from £12,570 to £12,070 and I'm a little confused as to why this is.

I only have one source of income and nothing has changed financially for me in the last year. Can anyone shed some light on this?

eskbanker

Paying tax underpaid in a previous tax year perhaps?  Or is your PAYE income maybe in £12K territory?

The coding notice should show its workings though, or alternatively the information should be in your online personal tax account.

molerat

Your tax free allowance has not been cut, it is still £12570. Your tax code has changed to collect the correct amount of tax.  The letter and your on line tax account will clearly state how that new tax code is made up.  Once you have looked at all the entries against the code come back if you have any questions.

Do you earn more than £12070 ?

Bookworm105

read the letter again, we cannot see it from here

Dazed_and_C0nfused

molerat said:

Your tax free allowance has not been cut, it is still £12570. Your tax code has changed to collect the correct amount of tax.  The letter and your on line tax account will clearly state how that new tax code is made up.  Once you have looked at all the entries against the code come back if you have any questions.

Do you earn more than £12070 ?

Or it could be the old untaxed interest/low earnings or pension scenario 😉.

Which would usually mean the correct amount  of tax (none) was being deducted!