HMRC: "Our records show that your 2012-13..."

[a_bread]

Doing a self-assessment online return. This is causing me grief:

"Our records show that your 2012-13 PAYE Notice of Coding includes an adjustment for tax underpaid.
Underpaid tax for 2012-13 included in your tax code for 2013-14: £ 0.00
If this figure is not correct, select 'No' and you will be given a chance to amend it below."

I have got the PAYE Coding Notices but it does not express any numbers in terms of "Underpaid tax for 2012-13". Do I have to calculate it by the difference between my 13/14 allowance and a *normal* allowance (9,440) then multiply by my top marginal rate to estimate it? Is that really what they are expecting from a lay person?

Any insights greatly appreciated!

[LC23]

There is no calculation to be done. If you had a code with tax coded out into 13/14 it would be clear. Suggest you phone HMRC and ask them to confirm the amount coded from 12/13 and provide a copy of the code to you for your records.

Have you checked all 12/13 and 13/14 codes you have received?

[a_bread]

Thanks! I didn't expect such a fast response, especially to a dull question!

I have coding notices for both years. Only the 13/14 year shows a reduction from the standard allowance. It does not state that I have any unpaid amounts still owed for earlier years. Simply that the code "has changed because of information in your tax return".

PAYE for 11/12 didn't take account of the full tax payable at the time, so I had to pay the rest in January 2013. However, the tax code for 12/13 did not get changed. I was sent a notice for 12/13 just after I'd paid the 11/12 tax bill, re-iterating the normal tax code for 12/13. Simultaneously I was also sent a notice for 13/14 amending the tax code downwards.

It seems the HMRC then assumes for 13/14 a similar income to 11/12. Trouble is, I'm currently filling in 12/13, which falls in-between the two. Therefore I expect to cough up this month again.

So are these questions aimed at people in a different situation from mine?

[LC23]

Did you have benefits in kind in 11/12? What has likely happened is HMRC have seen an underpayment arise for 11/12 and assumed the same will happen for 12/13. By that stage it was too late to include this perceived underpayment in the 12/13 year so they put it in the 13/14 code.

Its a stupid way to do things for people who file self assessment returns as tax is always settled at year end anyway. Looks like you do need show it as tax coded out to a later year on your 12/13 return. If you want to pm a copy of your tax code and paperwork received with it I will take a look for you.

[a_bread]

Thanks!