How to reduce 'Non coded income'

Notepad_Phil

When due to one-off circumstances a large amount of 'Non coded income' gets assigned in the next tax-year to a person (i.e. showing when they look on the PAYE Income Tax Summary of the HMRC Tax Portal), then what is the best way to go about reducing or completely erasing that amount.

Should they a) contact the HMRC via phone/chat and find out what exactly the 'Non coded income' is made up of and then get the HMRC to subtract off the bits that were one-off occurrences last tax-year, or b) should they click on the 'Update or remove' link that is showing against the 'Non coded income' and then specify that the 'Non coded income' is incorrect, but then what would they put as the correct amount as they can't quite figure out how the amount is actually calculated, so they wouldn't be exactly sure on what to put it down to - though they are likely to be a non-tax payer even after all savings interest and dividends are added on to their income this tax-year.

Many thanks for any thoughts on best way to approach this.

Dazed_and_C0nfused

Notepad_Phil said:

When due to one-off circumstances a large amount of 'Non coded income' gets assigned in the next tax-year to a person (i.e. showing when they look on the PAYE Income Tax Summary of the HMRC Tax Portal), then what is the best way to go about reducing or completely erasing that amount.

Should they a) contact the HMRC via phone/chat and find out what exactly the 'Non coded income' is made up of and then get the HMRC to subtract off the bits that were one-off occurrences last tax-year, or b) should they click on the 'Update or remove' link that is showing against the 'Non coded income' and then specify that the 'Non coded income' is incorrect, but then what would they put as the correct amount as they can't quite figure out how the amount is actually calculated, so they wouldn't be exactly sure on what to put it down to - though they are likely to be a non-tax payer even after all savings interest and dividends are added on to their income this tax-year.

Many thanks for any thoughts on best way to approach this.

Personally I think b) is the better option.

The amount usually relates to one or more entries on a tax return filed for a previous tax year.  So it can be quite old.  Or might be from a return filed earlier in this tax year.

If all current source of taxable income are already accounted for i.e. jobs, PAYE pensions, State Pension, untaxed interest etc then there is no need for "non coded income" to be present.

I think its primary purpose is to ensure the correct adjusted net income is calculated so if all income is already present it isn't needed.  And if they are now a non taxpayer it is having no impact on anything important anyway.

Notepad_Phil

Just to update this, we went through the self assessment figures once again and this time managed to figure out how the value had been put together. So used the update link on the hmrc portal to zero it and a couple of weeks later it was updated and a new tax code assigned. Thanks again for your pointer.