Tax code 26/27, unpaid tax from previous year

RG2015

I have just been notified of my tax code for 26/27 and there are 2 curious items.

First, it includes unpaid tax from previous year of £342. As I received a tax rebate of £227 for 24/25, this underpayment must relate to 25/26. Is there anywhere online where I can see where this has come from?

Second, my untaxed interest has increased by exactly £500 from this year to next. As HMRC only have my actual 24/25 to go on, this sounds like they have pushed me into the higher rate tax band. Does this sound about right?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6654332/tax-code-26-27-unpaid-tax-from-previous-year

Not that I'm aware of no. But I have seen it on some tax codes received by snail mail (on the code it relates to, not the one it's being collected in).

Yes. When I check my codes (for next year) online I can see the estimated used for each PAYE source. Does that not give you a good idea of the total income HMRC expect you to have? Which can of course be updated if you know it will be different to their estimate.

RG2015

"Does that not give you a good idea of the total income HMRC expect you to have?"

Yes, in part. It doesn't include my state pension but I know what this will be, including the 4.6% increase from April 2026.

I think the main problem is my Hargreaves Lansdown SIPP which they have overestimated. All I have withdrawn in previous years is £2,700 to maximise the tax benefit. Now they are projecting £4,628 for this year and next. I have now corrected this.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81874492#Comment_81874492

If that's not shown I would be far more concerned about your State Pension being missing than the interest to be honest 😳

Did the HL pension start during the 2025/26 tax year by any chance?

RG2015

https://forums.moneysavingexpert.com/discussion/comment/81874496#Comment_81874496

Thanks again. And I made a mistake. My state pension is shown. But I have also have just thought that my pension contributions to HL are tax deductible.

My HL £2,800 net contribution and £2,700 withdrawal started 3 years ago.I understand that they extrapolate forward expecting withdrawals in more than 1 month.

I will need to do my calculations well before April.

molerat

https://forums.moneysavingexpert.com/discussion/comment/81874396#Comment_81874396

Where are next year's codes available in the on line account ? Can't see anything in mine.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81874503#Comment_81874503

Relief at source pension contribution aren't tax deductible.

On reflection the £4,628 figure is likely to be down to you taking the pension income by tax month 7 (month to 5 November 2025).

That would equate to an annualised amount of £4,628 as the estimate for the forthcoming tax year. If you know you will only be taking another £2,700 then updating that £4,628 figure is fine.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81874514#Comment_81874514

When I log in and access the Pay As You Earn page I get an option to view codes for the next tax year.

molerat

https://forums.moneysavingexpert.com/discussion/comment/81874519#Comment_81874519

Mmmm …… no option for me, MrsM or my SIL.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81874544#Comment_81874544

It looks to be spread out somewhat so maybe worth checking again in a few days?

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye13005

RG2015

https://forums.moneysavingexpert.com/discussion/comment/81874516#Comment_81874516

Would they be deducted when determining if the higher rate threshold was breached? That was what I meant.