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

moneytorques

sheramber said:

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

Thank you everyone, that is exactly what it is, having logged into the HMRC app it goes on to provide very detailed explanation for the Tax Code Change and for me it's a result of the Self Assessment highlighting items that would lead to an underpayment of tax this financial year, nothing to do with the underpayment for last tax year 23/24.

I'm now tempted to increase my Pension contribution from £250 per month to maybe £750 for the remainder of this financial year.

Dazed_and_C0nfused

moneytorques said:

sheramber said:

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

Thank you everyone, that is exactly what it is, having logged into the HMRC app it goes on to provide very detailed explanation for the Tax Code Change and for me it's a result of the Self Assessment highlighting items that would lead to an underpayment of tax this financial year, nothing to do with the underpayment for last tax year 23/24.

I'm now tempted to increase my Pension contribution from £250 per month to maybe £750 for the remainder of this financial year.

Once HICBC comes into play extra pension contributions are usually exceptionally tax efficient.