HMRC Tax Bill

tigerspill

Hi,

Not sure the best forum on which to ask this question, but I know there are many very knowledgable people on this that may be able to help.

My wife has a tax statement (paper) that has been reissued from 2021/2022 where she now owes £192. The reason is that she transferred 10% of her income tax allowance to me, back dated to 21/22 (and as a result, I reduced my tax by £252). So this is all correct - she does owe this £192.

However, HMRC told her that they would reclaim this via her tax code - however, she has no income in this tax year from which to collect this £192.

The Current Position on her HMRC account says she owes no tax - but she obviously does.

How does this get resolved? Should she pay this £192, and if so, how? as there is nothing outstanding on her account - or should she just pay it anyway and it will then show £192 in credit.

Thanks

eskbanker

I imagine that HMRC will be in touch again once they realise that she has no PAYE income, although they should presumably already be aware of this, unless something has changed particularly recently?

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81882776#Comment_81882776

Nothing changed recently - no PAYE for a few years. Her DB pension will start (hopefully) in mid-April.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6655170/hmrc-tax-bill

What exactly is this "tax statement".

The reference to a statement usually means Self Assessment but that seems unlikely from everything else you have posted.

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81883486#Comment_81883486

Apologies - I got my terminology wrong. It is an updated Tax Calculation (rather than statement) that is accessed via a message posted by HMRC on her online account

Dazed_and_C0nfused

Does it mention the phrase Simple Assessment anywhere?

Or P800?

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81884641#Comment_81884641

No - nothing like this.

The Title says "Tax Calculation for the Year 6th April Year 2021 to 5th April 2022"

It states my wife's name and that she owes £192.40 followed by some basic info. but one part says "We will automatically collect tax by increasing the tax deduction from your wages, salary or pension, usually in equal installments until next April"

Then there is a section "Full Tax Calculation for <name>"

Then there is a section explaining "Marriage Allowance" as this is the reason for the change.

When looking at her tax code online - it is now 898NX. So has been reduced. Part of the calculation says a reduction of £962 due to Underpayment from previous years. This equated to the owed £192.40 times five - which makes sense. It is just she has no PAYE income on which to apply this.

Note again, I am not challenging the updated calculation as it is what we expected and seems correct. I just don't know how to pay it.

We do plan to do a Self Assessment for this FY, should we just add this in as under paid at that time wonder.

GunJack

I had one of these around Oct last year, but in my online tax account it clearly stated the amount owed and gave a link to pay it online. Once HMRC catch up with themselves you should see similar in her account.

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81884641#Comment_81884641

Apologies - I have just noticed that it says P800 in small text at the botton of the calculaion.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81884724#Comment_81884724

A P800 is used for refunds and tax owed where HMRC think it can be collected by a tax code adjustment.

You have explained your wife's circumstances for this tax year but what is her current expectation for the forthcoming tax year?

And as she has no income in this current tax year what does the code of 892N (on a non cumulative basis) relate to?

J63320

I received a P800 (for. 2024-5) via my tax account in November with a link for payment. The amount was correct but I wasn’t ready to pay the tax at that point. In January I logged in again, found the P800 and clicked on the link. It took me to a page that said I had paid the correct amount of tax for 2024-5.

I called the helpline. They couldn’t explain what had happened but they did give me the bank details and a reference number so I could pay by bank transfer.