Tax Code Change, HMRC reclaim 2k SA bill for 23/24

moneytorques

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Dazed_and_C0nfused

moneytorques said:

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Your thread title refers to SA.

Your current tax code (for 2024-25) would not be amended now to collect tax for 2023-24 owed under SA.

It would however be amended to collect extra tax for 2024-25, so you have paid more for this year before the tax year ends.

It will be your 2025-26 that includes the tax owed for 2023-24.

moneytorques

Dazed_and_C0nfused said:

moneytorques said:

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Your thread title refers to SA.

Your current tax code (for 2024-25) would not be amended now to collect tax for 2023-24 owed under SA.

It would however be amended to collect extra tax for 2024-25, so you have paid more for this year before the tax year ends.

It will be your 2025-26 that includes the tax owed for 2023-24.

Thank you.

I am PAYE but do a SA as have some expenses not reimbursed by employer and I claim Child Benefit although this I earn higher than the threshold.
So I am overpaying Tax this year to refund HMRC for the underpaid tax last year.

Does a voluntary higher pension contribution from January reduce the Tax bill at all?

Dazed_and_C0nfused

moneytorques said:

Dazed_and_C0nfused said:

moneytorques said:

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Your thread title refers to SA.

Your current tax code (for 2024-25) would not be amended now to collect tax for 2023-24 owed under SA.

It would however be amended to collect extra tax for 2024-25, so you have paid more for this year before the tax year ends.

It will be your 2025-26 that includes the tax owed for 2023-24.

Thank you.

I am PAYE but do a SA as have some expenses not reimbursed by employer and I claim Child Benefit although this I earn higher than the threshold.
So I am overpaying Tax this year to refund HMRC for the underpaid tax last year.

Does a voluntary higher pension contribution from January reduce the Tax bill at all?

I really do think you are getting very confused.

Tax owed via Self Assessment for 2023-24 is never collected via your 2024-25 tax code.

If HICBC is still a factor then higher pension contributions are likely to reduce your liability, but only for 2024-25, pension contributions made now (or in January 2025) cannot change anything for 2023-24.

moneytorques

Dazed_and_C0nfused said:

moneytorques said:

Dazed_and_C0nfused said:

moneytorques said:

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Your thread title refers to SA.

Your current tax code (for 2024-25) would not be amended now to collect tax for 2023-24 owed under SA.

It would however be amended to collect extra tax for 2024-25, so you have paid more for this year before the tax year ends.

It will be your 2025-26 that includes the tax owed for 2023-24.

Thank you.

I am PAYE but do a SA as have some expenses not reimbursed by employer and I claim Child Benefit although this I earn higher than the threshold.
So I am overpaying Tax this year to refund HMRC for the underpaid tax last year.

Does a voluntary higher pension contribution from January reduce the Tax bill at all?

I really do think you are getting very confused.

Tax owed via Self Assessment for 2023-24 is never collected via your 2024-25 tax code.

If HICBC is still a factor then higher pension contributions are likely to reduce your liability, but only for 2024-25, pension contributions made now (or in January 2025) cannot change anything for 2023-24.

This is what is confusing me,
"If you have filed your tax return by the 30 December 2023 deadline and you meet all three of the conditions set out above, HMRC will automatically amend your 2024/25 tax code to collect the tax that you owe under Self Assessment for 2022/23 – you do not need to ask them to do this."

HMRC have just amended my Tax code (23.12.24) to 69LX so I wanted to clarify if this reduction is so substantial because it will only be for Tax Months January, February, March 2024.

molerat

HMRC have just amended my Tax code (23.12.24) to 69LX so I wanted to clarify if this reduction is so substantial because it will only be for Tax Months January, February, March 2024.

As the code has an X suffix it is on a non cumulative basis and takes each month going forward in isolation.

TheSpectator

moneytorques said:

Dazed_and_C0nfused said:

moneytorques said:

Dazed_and_C0nfused said:

moneytorques said:

Hi,
My tax code has been changed to reclaim an underpaid tax of 2k for the previous Tax Year.
Expected as was some Child Benefit high income charge included.

How long will the tax code change be applied for is in a set amount of months?

Can I increase my work pension employee contributions to benefit a tax reduction to offset any of this?
(I am a higher rate Tax payer).
Thanks.

Your thread title refers to SA.

Your current tax code (for 2024-25) would not be amended now to collect tax for 2023-24 owed under SA.

It would however be amended to collect extra tax for 2024-25, so you have paid more for this year before the tax year ends.

It will be your 2025-26 that includes the tax owed for 2023-24.

Thank you.

I am PAYE but do a SA as have some expenses not reimbursed by employer and I claim Child Benefit although this I earn higher than the threshold.
So I am overpaying Tax this year to refund HMRC for the underpaid tax last year.

Does a voluntary higher pension contribution from January reduce the Tax bill at all?

I really do think you are getting very confused.

Tax owed via Self Assessment for 2023-24 is never collected via your 2024-25 tax code.

If HICBC is still a factor then higher pension contributions are likely to reduce your liability, but only for 2024-25, pension contributions made now (or in January 2025) cannot change anything for 2023-24.

This is what is confusing me,
"If you have filed your tax return by the 30 December 2023 deadline and you meet all three of the conditions set out above, HMRC will automatically amend your 2024/25 tax code to collect the tax that you owe under Self Assessment for 2022/23 – you do not need to ask them to do this."

HMRC have just amended my Tax code (23.12.24) to 69LX so I wanted to clarify if this reduction is so substantial because it will only be for Tax Months January, February, March 2024.

So is it actually a 2022-23 underpayment rather than 23/24 (we would expect 23/24 atvthis time of year).

How is your tax code broken down? i.e. what is the restriction to take it down to 69L X and what was it before the change?

moneytorques

Sorry that example of the text scenario I used  is a year out I took from an online search.

I have completed the tax return for 23/24 year and had the tax change from 1250L to 69LX.

eskbanker

moneytorques said:

Sorry that example of the text scenario I used  is a year out I took from an online search.

I have completed the tax return for 23/24 year and had the tax change from 1250L to 69LX.

The point remains that underpaid tax for 2023/24 will be collected in 2025/26, not 2024/25, i.e. it 'skips a year' (as in your copied wording).

Any change to your 2024/25 coding will be for a different reason, which should be explained on the coding notice and your online personal tax account.

Dazed_and_C0nfused

eskbanker said:

moneytorques said:

Sorry that example of the text scenario I used  is a year out I took from an online search.

I have completed the tax return for 23/24 year and had the tax change from 1250L to 69LX.

The point remains that underpaid tax for 2023/24 will be collected in 2025/26, not 2024/25, i.e. it 'skips a year' (as in your copied wording).

Any change to your 2024/25 coding will be for a different reason, which should be explained on the coding notice and your online personal tax account.

And was likely to have been promoted by you completing your return in such a way that you effectively told HMRC you wanted them to review your tax code for current tax year.

There is a question near the end of your return about it.

sheramber

The adjustment for 24/25 could be for HIBC for 24/25 to prevent underpayment of tax arising.