Tax Code Issue

Noodle58

Hi, are there any tax code gurus on here please? My tax code for 24/25 was changed to 1147L because apparently I underpaid by £800, however, I've now received another tax code dropping my allowance for 25/26 to 927L because I still owe £659!  I don't understand why as surely reducing my allowance by £1100 has covered this? TIA

eskbanker

If you underpaid tax in 2023/24, this will generally be collected by code change in 2025/26, but HMRC will also assume that your additional non-PAYE income (e.g. taxable savings interest) will continue to be earned in 2024/25 and will separately adjust your current year coding to collect that too, so the adjustments may relate to different tax years?

Albermarle

Reducing your tax code by £1100, would only have resulted in you paying an extra £220 in tax ( assuming you are a basic rate taxpayer)
To recover £800 your tax code would have to been reduced a lot more than that, and it seems for some reason it was not, so you still owe them.

Noodle58

Thanks for the responses, I think I need to get to the bottom of why I owe them tax.