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Rather pay tax outright than have code adjusted

Bandy2023
Bandy2023 Posts: 43 Forumite
10 Posts First Anniversary Name Dropper
Hi, all
I have yet to lodge my tax return, but I am ready to.
One thing I noticed in my online calculation is "amount of underpaid tax included in your tax code for 2024-25 = £ 2042.00"
I agree with the amount, but I just want to pay it, I don't want my tax code adjusted.
How do I change this??

EDIT - I can see how to adjust this now

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 18,271 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Bandy2023 said:
    Hi, all
    I have yet to lodge my tax return, but I am ready to.
    One thing I noticed in my online calculation is "amount of underpaid tax included in your tax code for 2024-25 = £ 2042.00"
    I agree with the amount, but I just want to pay it, I don't want my tax code adjusted.
    How do I change this??
    Hasn't your tax code been adjusted for this for the last 9 months or so 🤔

    If you remove that entry doesn't your Self Assessment liability increase by £2,042?
  • Bandy2023
    Bandy2023 Posts: 43 Forumite
    10 Posts First Anniversary Name Dropper
    edited 3 January at 8:42AM
    Bandy2023 said:
    Hi, all
    I have yet to lodge my tax return, but I am ready to.
    One thing I noticed in my online calculation is "amount of underpaid tax included in your tax code for 2024-25 = £ 2042.00"
    I agree with the amount, but I just want to pay it, I don't want my tax code adjusted.
    How do I change this??
    Hasn't your tax code been adjusted for this for the last 9 months or so 🤔

    If you remove that entry doesn't your Self Assessment liability increase by £2,042?
    I've no idea  :'(
    I don't think it has been, I've not noticed any drop in net salary and no notification of a code change in the post.
  • I'm not sure of the reason for the underpayment, but if I know that if it is because you have declared more than £1000 savings interest, you can pay the tax before the end of January 2026 or they will adjust your tax code for 2026/25 to take it back. The don't change your tax code part way through the year so underpaid tax for 24/25 is collected in 26/27, not 25/26. Personally I have chosen to pay in full, so they don't mess with my tax code, but obviously this reduces the interest we would get by keeping the money in the bank, which in turn reduces the amount of tax we will owe for 25/26.
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