They're taxing me for an amount owed from 23/24 when I already paid it...

djbreeze

Hello good people,

This seemed the most appropriate place for my question which is that a few weeks ago I got a notification from HMRC of a change of tax code. I logged in and discovered that I owed a small amount (£248) for the tax year 23/24 which I then paid (on 10/2/25) in full. It now turns out that they have applied the new code (1133L NONCUM where before it was 1257L CUMUL) and are taking the amount of tax I owed (that I have already paid) divided by 12 from my salary (which got paid today 24/2/25).

So does anyone know whether this will rectify itself in time or do I now have to attempt to contact them about it which I gather is nigh on impossible?

Thanks in advance for any advice,

David

eskbanker

Are they perhaps adjusting your 2024/25 tax code on the basis that they're assuming you'll be earning the same interest as 2023/24 during the current year?

Ayr_Rage

As above, check your online account for HMRC's estimate of future untaxed (savings) income.

You may be able to see your tax code for next year too.

djbreeze

eskbanker said:

Are they perhaps adjusting your 2024/25 tax code on the basis that they're assuming you'll be earning the same interest as 2023/24 during the current year?

Ayr_Rage said:

As above, check your online account for HMRC's estimate of future untaxed (savings) income.

You may be able to see your tax code for next year too.

Thanks both,

Yes it looks like they are assuming I'll earn the same this year & they'd presumably refuse to change it back to 1257L based on my say so that I won't be earning enough interest to be liable for income tax on it this year. So it looks like I just have to accept that I'm paying more tax than I should be, will they realise that I've overpaid at some point or same question as before, will it be up to me to point out to them that I have paid too much tax at some point in the future?

Thanks again,

David

Bookworm105

djbreeze said:

 So it looks like I just have to accept that I'm paying more tax than I should be, 

take control of your own tax affairs by reading how to do things yourself 
Tax codes: How to update your tax code - GOV.UK

Sarahspangles

djbreeze said:

Yes it looks like they are assuming I'll earn the same this year & they'd presumably refuse to change it back to 1257L based on my say so that I won't be earning enough interest to be liable for income tax on it this year.

They updated mine based on my say so. You can call or just use the ‘Add investment income’ option in the HMRC website.

djbreeze

Bookworm105 said:

djbreeze said:

 So it looks like I just have to accept that I'm paying more tax than I should be, 

take control of your own tax affairs by reading how to do things yourself 
Tax codes: How to update your tax code - GOV.UK

Sarahspangles said:

djbreeze said:

Yes it looks like they are assuming I'll earn the same this year & they'd presumably refuse to change it back to 1257L based on my say so that I won't be earning enough interest to be liable for income tax on it this year.

They updated mine based on my say so. You can call or just use the ‘Add investment income’ option in the HMRC website.

Thanks I'll explore those, in fact I think I've already informed them that my extra income for this and next tax years will be zero. I stupidly thought when I got the original notice that I'd just pay it in full thereby avoiding all the potential hassle of having a tax code change. Silly me...

Albermarle

will they realise that I've overpaid at some point or same question as before, will it be up to me to point out to them that I have paid too much tax at some point in the future?

If you do not do  anything, then around 6 months after the end of the tax year there will be an automatic calculation for 24/25 for you.
If you have paid too much tax, you will get a rebate.
Remember your tax code is just an attempt by HMRC to collect the correct amount of tax. Only once the tax year finishes, and they have all the info can they check exactly.

djbreeze

Albermarle said:

will they realise that I've overpaid at some point or same question as before, will it be up to me to point out to them that I have paid too much tax at some point in the future?

If you do not do  anything, then around 6 months after the end of the tax year there will be an automatic calculation for 24/25 for you.
If you have paid too much tax, you will get a rebate.
Remember your tax code is just an attempt by HMRC to collect the correct amount of tax. Only once the tax year finishes, and they have all the info can they check exactly.

Thanks for this, super useful to know that I don't have to get any more bogged down with all of this than I am already...