Not paid enough tax but on PAYE

swingaloo

How is it possible to get a bill from the tax office saying over £350 is owed as not enough tax paid during 23/24?
They say they will adjust the tax code in April unless it is paid before then. Yet the person has been in the same employment for the last 5 years and is on PAYE and has no other taxable income

Dazed_and_C0nfused

swingaloo said:

How is it possible to get a bill from the tax office saying over £350 is owed as not enough tax paid during 23/24?
They say they will adjust the tax code in April unless it is paid before then. Yet the person has been in the same employment for the last 5 years and is on PAYE and has no other taxable income

There could be lots of reasons, being on PAYE doesn't mean no adjustment is ever needed after the end of the tax year.

A common reason is having two jobs at the same time (as far as payments are concerned, you don't have to physically be working at two jobs at the same time).

If it was there would be a lot of disappointment from those who had been too much tax during the year!

When you say a "bill" I presume they have received a calculation letter, no doubt a P800 if the tax is going to be collected via next year's tax code.

What exactly does this calculation show?

Dazed_and_C0nfused

And if this is your friend who seemed to have let some undesirables get involved with his pension, is it possible he took some taxable money out of that during 2023-24?

Newbie_John

It could have been savings over threshold? Many reasons..

eskbanker

Newbie_John said:

It could have been savings over threshold? Many reasons..

From OP:

swingaloo said:

...is on PAYE and has no other taxable income

Having said that, many don't understand that non-ISA savings interest is taxable income, even if within the personal savings allowance....

Penguin_

Any Benefits in Kind? Healthcare cover provided by the employer? Wouldn't have been reported until after the end of the financial year.

swingaloo

Thank you for the replies. Just to clarify-

Its not the person who had problems with his pension. 
He doesn't have any proper savings and no shares or anything like that.

eskbanker

Have you succeeded in getting sight of the relevant paperwork that explains it yet?  I can't speak for other posters but there's little value in complete guesswork as to the reasons, with so little to go on....

chrisbur

Possibly the adjustment for week 54/56 payment 23/24 if approaching 40% band.

Dazed_and_C0nfused

chrisbur said:

Possibly the adjustment for week 54/56 payment 23/24 if approaching 40% band.

Good shout!