Tax code change
Discussion
I could ring the tax office but suspect they'll be busy this time of year.
I've had a tax demand and letter to say my code will be adjusted to reclaim the amount due. I'm sure it's correct but I just wanted to understand the maths.
I owe £775
My tax free allowance will reduce by £1938
I initially thought 775 must be 20% of 1938 but nowhere near.
How does paying tax on an extra 1938 equate to recouping £775?
Thanks.
I've had a tax demand and letter to say my code will be adjusted to reclaim the amount due. I'm sure it's correct but I just wanted to understand the maths.
I owe £775
My tax free allowance will reduce by £1938
I initially thought 775 must be 20% of 1938 but nowhere near.
How does paying tax on an extra 1938 equate to recouping £775?
Thanks.
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