Underpaid Tax

eskbanker

When your tax code is changed, HMRC will send you a notice and also the employer, so you should be able to cross-check via payslips that the employer is using the correct one at any point in time?

Dazed_and_C0nfused

Nowhere in this thread have you provided any information to suggest that the employer has operated the wrong tax code.

A start code of 0T is usually used for one of three particular reasons.  Nothing unusual in that.

Then they operated BR, presumably at the request of HMRC.

What else do you think this employer should have done 🤔

SacredStephan

Where is your personal allowance? Do you have other PAYE income?

[Deleted User]

Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 

sheramber

[Deleted User] said:

Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 

Did you miss

 I was on tax code BR which is 20% but earned in a bracket where I should have paid 40% so they are asking for the extra 20% on the salary over the threshold.

sheramber

rrydvdsn said:

Wouldn't HMRC have any information of correspondence with the company, so would know if they requested the change of a tax code, I was on tax code BR which is 20% but earned in a bracket where I should have paid 40% so they are asking for the extra 20% on the salary over the threshold.

Was BR the last code issued by HMRC or was there a later one?  If  there was, what was it and when?

 If HMRC issued a later code you should have got a notice of coding showing the new code number so could check your payslip  had the new code on it.

Dazed_and_C0nfused

[Deleted User] said:

Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 

Lots of reasons to be honest.  It could be that BR was the appropriate code to use when this new job first started.

But income levels may have changed later in the year and a D0 code might have become more appropriate.  Or BR and an adjustment to the main tax code.  But if there wasn't a later review of the codes then the BR code could have continued for the remainder of the tax year.

[Deleted User]

Dazed_and_C0nfused said:

[Deleted User] said:

Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 

Lots of reasons to be honest.  It could be that BR was the appropriate code to use when this new job first started.

But income levels may have changed later in the year and a D0 code might have become more appropriate.  Or BR and an adjustment to the main tax code.  But if there wasn't a later review of the codes then the BR code could have continued for the remainder of the tax year.

I went solely off the information in the opening post, missing the post at 5.11 pm