Overpayment of income tax

RG2015

I got my 2023/2024 P800 online saying I had underpaid tax by £274.20. I paid this online but then realised that £209 of this had already been included in my PAYE tax code for 2024/2025.

Will HMRC automatically adjust my 2024/2025 tax code to reduce my tax for my February and March tax deductions?

Dazed_and_C0nfused

RG2015 said:

I got my 2023/2024 P800 online saying I had underpaid tax by £274.20. I paid this online but then realised that £209 of this had already been included in my PAYE tax code for 2024/2025.

Will HMRC automatically adjust my 2024/2025 tax code to reduce my tax for my February and March tax deductions?

Very much doubt it.

Are you absolutely certain that the £209 included in your tax code was from 2023-24?

It's definitely not impossible but it's less likely than it being from 2022-23 (or earlier) or the current tax year.

I am a bit surprised you could pay £274.20 if what you say about the £209 is true.

Sarahspangles

RG2015 said:

I got my 2023/2024 P800 online saying I had underpaid tax by £274.20. I paid this online but then realised that £209 of this had already been included in my PAYE tax code for 2024/2025.

Will HMRC automatically adjust my 2024/2025 tax code to reduce my tax for my February and March tax deductions?

Your P800 tells you what you owe, or are owed, for 2023/24.

It’s normal for your notice of coding to be adjusted to collect a possible underpayment in the current year. That way you shouldn’t owe as much when your next P800 is issued. Does this relate to savings interest?

RG2015

The following screenshots are from my PTA.

Dazed_and_C0nfused

RG2015 said:

The following screenshots are from my PTA.

Have never seen anything like that bottom screenshot before and to be honest I'm not entirely sure how to interpret it.

I'm assuming that the top screenshot is your current tax code?  Is there a date showing for that tax code?  The in year adjustment entry for the £34 suggests it is fairly recent, the last month or so?

My gut feeling is that part of your payment has been allocated to the £64.60 that (I think) was going to be collected through your 2025-26 tax code.  And the remaining £209.60 hasn't yet been used.

But the line PUP-CODED-OUT.CANCELLED has thrown me.  PUP is an old reference (potential underpayment) from before HMRC changed their coding system getting in for 10 years ago.

If the £209 was from 2023-24 then the first part sort of makes sense, but not the CANCELLED bit at the end as that doesn't fit with your tax code still including a deduction for the £209.

All very confusing!  I suspect it will need a call to understand what is actually happening.

RG2015

I believe that HMRC have made a mistake by cancelling the PUP in my original 24/25 tax code.

It looks like this was done by solely referencing the 23/24 underpayment without referencing the original 24/25 tax code.

I would have expected the HMRC system to incorporate every element of my tax position. This feels more like two different people not knowing what the other is doing rather than a unified computer program.

Dazed_and_C0nfused

RG2015 said:

I believe that HMRC have made a mistake by cancelling the PUP in my original 24/25 tax code.

It looks like this was done by solely referencing the 23/24 underpayment without referencing the original 24/25 tax code.

I would have expected the HMRC system to incorporate every element of my tax position. This feels more like two different people not knowing what the other is doing rather than a unified computer program.

You've lost me now.

If the total you owed at 5 April 2024 was £274.20 and you have paid that £274.20 then surely you want the PUP in your code cancelling.

I thought that was the whole point of your original post.

Will HMRC automatically adjust my 2024/2025 tax code to reduce my tax for my February and March tax deductions?

RG2015

I think I have confused myself.

Just going back to the final screenshot though, it does not add up. The bottom line should say:

Tax I am owed, £209.60

RG2015

I have just remembered that after HMRC had issued my P800 advising that I owed £209.60 for 2023/2024, they said this would be collected via my 2025/2026 PAYE tax code.

I did not want my 2025/2026 tax code to be affected so I paid the £209.60. I suspect herefore that the PUP cancellation relates to my 2025/2026 tax code.

This issue is that HMRC had already included this in my 2024/2025 tax code by reducing my allowance by £1,048.00 in March 2024 (as shown in my screenshot in an earlier post).

I did not have the stamina to phone HMRC so I have written to them requesting that they advise me how they are going to reimburse me.

sheramber

With the backlog people are reporting your letter may not be actioned in time to adjust your code for 24/25.

If your code for 24/25 is not adjusted before your last payday then , when your tax paid is checked after April 25 any overpayment will be repaid. .

RG2015

sheramber said:

With the backlog people are reporting your letter may not be actioned in time to adjust your code for 24/25.

If your code for 24/25 is not adjusted before your last payday then , when your tax paid is checked after April 25 any overpayment will be repaid. .

Thanks. Is the tax paid check after 25 April a standard procedure and how long may that take to complete?

I was also hoping that they may discover their mistake anyway and adjust my code off their own bat.