tax code change

Taff2121

hey, just received an email to say my tax code is changing to 1221L as i didn’t pay enough tax ending 5th April 2025. 

my query is under the income section of my personal tax account it estimated my salary ending April 2025 was £14,124 and starting April 2025 it will be £15105. both of these amounts are wrong. My salary is £15,404.40 and has been for the last year. so im still not going to be paying enough am I? am I meant to do anything with this or will HMRC make any relevant adjustments?

molerat

The code change should not be anything to do with your actual salary, PAYE should take care of that, but from other sources of untaxed income.  It should state what that source is.  You can update those salary amounts yourself so they are correct.

Dazed_and_C0nfused

Taff2121 said:

hey, just received an email to say my tax code is changing to 1221L as i didn’t pay enough tax ending 5th April 2025. 

my query is under the income section of my personal tax account it estimated my salary ending April 2025 was £14,124 and starting April 2025 it will be £15105. both of these amounts are wrong. My salary is £15,404.40 and has been for the last year. so im still not going to be paying enough am I? am I meant to do anything with this or will HMRC make any relevant adjustments?

Do you pay into a pension?

If so what method is used?  Net pay, relief at source or salary sacrifice?

Taff2121

i have no nothing income other than child benefit.
also not paying into a pension currently but did have something out on salary sacrifice last year - could this be it? 

Dazed_and_C0nfused

Taff2121 said:

i have no nothing income other than child benefit.
also not paying into a pension currently but did have something out on salary sacrifice last year - could this be it? 

Yes, HMRC are interested in taxable income.

Salary sacrifice means you have agreed to a lower salary and in return your employer paid some employer contributions into your pension.

You can update your expected taxable earnings on your Personal Tax Account.

FrugaiMacDugal

Taff2121 said:

hey, just received an email to say my tax code is changing to 1221L as i didn’t pay enough tax ending 5th April 2025. 

my query is under the income section of my personal tax account it estimated my salary ending April 2025 was £14,124 and starting April 2025 it will be £15105. both of these amounts are wrong. My salary is £15,404.40 and has been for the last year. so im still not going to be paying enough am I? am I meant to do anything with this or will HMRC make any relevant adjustments?

Something wrong with dates?

sheramber

FrugaiMacDugal said:

Taff2121 said:

hey, just received an email to say my tax code is changing to 1221L as i didn’t pay enough tax ending 5th April 2025. 

my query is under the income section of my personal tax account it estimated my salary ending April 2025 was £14,124 and starting April 2025 it will be £15105. both of these amounts are wrong. My salary is £15,404.40 and has been for the last year. so im still not going to be paying enough am I? am I meant to do anything with this or will HMRC make any relevant adjustments?

Something wrong with dates?

Salary up to 5 April 25  - 24/25

Salary from 6 April  25 - 25/26

Taff2121

yes @sheramber that’s what i meant🙂