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Help!! HMRC randomly dipped in and took 1/4 of my wages
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brutal_deluxe said:Thanks guys, appreciate this.
So listen, all I'm concerned about right now is what's happening from this point on.
The first thing that's stated in black and white is it's 'estimated' have "underpaid 549 tax this year". Fine, so once that 'debt' is clear, it's over right? Back to my original tax code? How can it be read any other way?
You will get a new tax code for the 2025-26 tax year which will not have the deduction relating to the £549 (which is an estimate of what you might owe for 2024-25, the final position will be reviewed later this summer/autumn).
But your 2025-26 tax code is likely to have the same deduction for untaxed interest (which is an estimate based on the latest information HMRC hold).
And if you owe tax for 2023-24 then that might be included in your 2025-26 tax code as well.
So whatever your original code was is unlikely to what you will have for 2025-26.1 -
brutal_deluxe said:Bobziz said:Worth checking your other 'ISA' accounts too just in case they are not actually what you think they are.
I just don't want to have to chase a rebate or anything . It's definitely not going to be more than the 549 they day I've underpaid?
Once this has been established, I can consider moving from these non ISA accounts that I appear to have misunderstood
So if you earn exactly the same next month as you did when K283X was first used you can expect to pay the exact same amount of tax. That will only change on 6 April, when a new tax code should be in place (details of what that new tax code is might not be available just yet).1 -
Dazed_and_C0nfused said:brutal_deluxe said:Bobziz said:Worth checking your other 'ISA' accounts too just in case they are not actually what you think they are.
I just don't want to have to chase a rebate or anything . It's definitely not going to be more than the 549 they day I've underpaid?
Once this has been established, I can consider moving from these non ISA accounts that I appear to have misunderstood
So if you earn exactly the same next month as you did when K283X was first used you can expect to pay the exact same amount of tax. That will only change on 6 April, when a new tax code should be in place (details of what that new tax code is might not be available just yet).0 -
brutal_deluxe said:Dazed_and_C0nfused said:brutal_deluxe said:Bobziz said:Worth checking your other 'ISA' accounts too just in case they are not actually what you think they are.
I just don't want to have to chase a rebate or anything . It's definitely not going to be more than the 549 they day I've underpaid?
Once this has been established, I can consider moving from these non ISA accounts that I appear to have misunderstood
So if you earn exactly the same next month as you did when K283X was first used you can expect to pay the exact same amount of tax. That will only change on 6 April, when a new tax code should be in place (details of what that new tax code is might not be available just yet).
NB. PAYE is always a provisional attempt to collect the correct tax, it is reviewed once the tax year ends and, if you paid too much or not enough, HMRC will let you know.2 -
OP has a salary of £45k and is earning about £6k pa in interest from unsheltered instant access savings accounts. This seems likely to put them very close to the higher rate tax threshold?OP are you making pension contributions etc. that will keep you in the basic rate band?N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
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QrizB said:OP has a salary of £45k and is earning about £6k pa in interest from unsheltered instant access savings accounts. This seems likely to put them very close to the higher rate tax threshold?OP are you making pension contributions etc. that will keep you in the basic rate band?
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masonic said:QrizB said:OP has a salary of £45k and is earning about £6k pa in interest from unsheltered instant access savings accounts. This seems likely to put them very close to the higher rate tax threshold?OP are you making pension contributions etc. that will keep you in the basic rate band?
So the nearer the end of the year the larger the deduction needs to be to collect relatively small sums.
£10,658 when an employer is only deducting basic rate tax would collect £2,131.60 over a full tax year.
But if the code with £10,658 deduction in was only being used for 3 months then it would only be intended to collect an extra £532.90 in that 3 month period.
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Dazed_and_C0nfused said:Ayr_Rage said:brutal_deluxe said:Thanks guys, appreciate this.
So listen, all I'm concerned about right now is what's happening from this point on.
The first thing that's stated in black and white is it's 'estimated' have "underpaid 549 tax this year". Fine, so once that 'debt' is clear, it's over right? Back to my original tax code? How can it be read any other way?
You can update that figure yourself online once you've worked out your estimate.0 -
Dazed_and_C0nfused said:masonic said:QrizB said:OP has a salary of £45k and is earning about £6k pa in interest from unsheltered instant access savings accounts. This seems likely to put them very close to the higher rate tax threshold?OP are you making pension contributions etc. that will keep you in the basic rate band?
So the nearer the end of the year the larger the deduction needs to be to collect relatively small sums.
£10,658 when an employer is only deducting basic rate tax would collect £2,131.60 over a full tax year.
But if the code with £10,658 deduction in was only being used for 3 months then it would only be intended to collect an extra £532.90 in that 3 month period.
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eskbanker said:Dazed_and_C0nfused said:Ayr_Rage said:brutal_deluxe said:Thanks guys, appreciate this.
So listen, all I'm concerned about right now is what's happening from this point on.
The first thing that's stated in black and white is it's 'estimated' have "underpaid 549 tax this year". Fine, so once that 'debt' is clear, it's over right? Back to my original tax code? How can it be read any other way?
You can update that figure yourself online once you've worked out your estimate.
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye130035
Note: The non coded income amount entered will be included with the PAYE income and Benefits in Kind (BIK) amount for the Total Income figure on which coding calculations are based. It will not be used in the End of Year reconciliation.0
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