Tax code for 2019-20

Mistermeaner · 18 April 2019 at 12:21PM

Hi

tax year 2018/19 I earned alot more than I have previously.

My earnings in previous tax years were always sub 100K so I breezed under the radar.

last year got some significant bonuses (that likely won't be repeated) that sent my gross taxable income to £120K and adjusted income to 150K+

I made some personal pension contributions (using carry forward allowance) to get gross taxable income down under 100K to avoid withdrawal of personal allowance and did self assessment for the first time. Self assessment resulted in HMRC owing me ~£3500 in tax refund (yey!)

Previously my 2019/20 was forecast as 224T (i presume reducing personal allowance due to assumed 100K+ earnings).... having made the personal pension contributions and submitted by self assessment this has now changed to 1935T.... I expected it to go up but not this far!!

The bit that doesn't look correct is HMRC have assumed i will make £9K of personal pension contributions and have also assumed my income to be £120K

This is way wrong....

I'm using salary sacrifice to pay alot into my pension this year and in actual fact my gross taxable income will be ~ £55K and I won't make any personal contributions to my pension.

I understand all this can be squared off at next years self asessment but have a feeling this will result in me underpaying tax through 19-20 and owing money in Apr 2020... I would sooner get it more correct to start with. I can't find any way on the 'my tax' portal to inform HMRC about this

How should I go about this ?

molerat · 18 April 2019 at 12:48PM

Telephone ?

Mistermeaner · 18 April 2019 at 12:56PM

molerat wrote: »

Telephone ?

thanks!

Always an option but a painful one in my experience

Given the facilities online with self assessment etc. I would have thought there may be a simpler way?

MichelleUK · 18 April 2019 at 1:23PM

I have changed both personal pensions and expected earnings via the personal tax account to get a revised code. I do not have it in front of me, but vaguely, you go into current tax year, employer, and then estimate your income. For the pension it is the same but you go into 'check my tax free allowance' and you can adjust it there.

The tax account is very odd in that you can get into the same bits of information from other pages but it does not always allow you to change things. I find the best option is to root around and you will usually be able to find it in the end!

Mistermeaner · 18 April 2019 at 4:03PM

thanks

i updated the expected salary - that was easy

come to have a go at asking them to remove the expected personal pension contributions: it takes me to a strange form asking me to confirm my employer details and then wont let me proceed as asks the following questions:

There are one or more errors in this form
Incorrect tax free allowance 1 - Enter a valid incorrect gross amount of tax free allowance
Incorrect tax free allowance 1 - Enter a valid correct gross amount of tax free allowance

What on earth do I put here?

All I want them to do is remove an additional tax free allowance of £8750 they have added for personal pension contributions.... however they also have my base personal allowance incorrectly low at £10000 as they have assumed my income to be £120K vs £55K.... I've corrected the income but the change hasn't pulled through to the personal allowance

Thanks for any help!

MichelleUK · 18 April 2019 at 4:48PM

Mistermeaner wrote: »

thanks

i updated the expected salary - that was easy

come to have a go at asking them to remove the expected personal pension contributions: it takes me to a strange form asking me to confirm my employer details and then wont let me proceed as asks the following questions:

There are one or more errors in this form
Incorrect tax free allowance 1 - Enter a valid incorrect gross amount of tax free allowance
Incorrect tax free allowance 1 - Enter a valid correct gross amount of tax free allowance

What on earth do I put here?

All I want them to do is remove an additional tax free allowance of £8750 they have added for personal pension contributions.... however they also have my base personal allowance incorrectly low at £10000 as they have assumed my income to be £120K vs £55K.... I've corrected the income but the change hasn't pulled through to the personal allowance

Thanks for any help!

You are nearly there!

Incorrect allowance is £8750
Correct allowance is £0 (in your case)

The new code may not be instant anymore, but they issue a new code within a few days. They will also pick up on you being under £100k and give you back the personal allowance.

PS...they also set a deadline by which time they will get back to you, it will probably say the end of May. I have never had it longer than a week though

Mistermeaner · 18 April 2019 at 5:01PM

thanks so much for your help

I'll check it in a week or so

Its good that this stuff is making its way online - just needs to slicken up a bit and be a little more user friendly (IMO)

Tax code for 2019-20

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