Paying underpaid tax via your tax code - is this still a thi
Discussion
My Mum (a pensioner) recently received her annual letter from HMRC. It seems she owes around £200 in underpaid tax, which they have said she needs to pay by March 2026. Not a major issue, but in the past I've had similar size underpayments sorted by minor adjustments to my tax code, which would be much simpler all around. Have HMRC stopped doing this, or is it related to her being retired / in receipt of a state pension or something like that.
I also noticed that she gets her state pension (~£16,000, includes an element of Widows pension) paid in full with no income tax deducted. They then recoup the tax by giving her a K tax code, which means she pays additional tax on her personal pension. They must have their reasons for doing this, but if someone only has a state pension and no other income then I presume they tax the state pension before it's paid, so why don't they do this for everyone?
I also noticed that she gets her state pension (~£16,000, includes an element of Widows pension) paid in full with no income tax deducted. They then recoup the tax by giving her a K tax code, which means she pays additional tax on her personal pension. They must have their reasons for doing this, but if someone only has a state pension and no other income then I presume they tax the state pension before it's paid, so why don't they do this for everyone?
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