under paid tax but I PAYE how?

[magpies]

for the second year in a row IR have said I've underpaid by £2.5k

I have had a permanent post with a large company and pay the tax PAYE as normal, I also have a pension with another large company which I've taken for the last 15 years - all of my off-takes are against this income again this is taxed via PAYE. The company Iwork for are aware of my pension, and in anycase pay way more than 2.5k

How can I find out which company has not paid the correct figure?

[trickywoo]

Sounds most likely that your tax code is either wrong or the company paying your pension has an out of date tax code.

However, HMRC aren't always right so it would be well worth double checking everything.

Do you also return a self assessment?

[magpies]

not done a tax return - never been asked or thought about it due to paying PAYE.

I now need to have some advice

just spotted the HMRC phone number

Edited by magpies on Thursday 10th November 11:08

[Eric Mc]

What is your tax code?

[magpies]

Just rang HMRC and now all sorted

It transpired that the shortfall happened 14/15 due to going into 40% but this was refunded by HMRC for some unknown reason - so it is this that is being repaid, was over 2 years but now agreed 3 so now a more manageable figure as I've now semi retired (hit 65 earlier this year)

I thought getting old would take longer.........

[otolith]

You've prompted me to email my pension provider about this. I receive a widower's pension, but it looks as if I'm only paying about 18% tax on it. I'm a higher rate taxpayer, so I assume it should all be at 40%?

[Eric Mc]

Do you know to what source of income your personal tax allowance has been allocated?

[otolith]

I assume that it is my primary employment - I've been in the job a decade, I've only been in receipt of the pension for 8 months.

[Eric Mc]

Check to see if the full allowances are completely mopped up by your main employment.

If that is the case, there should be no allowances left over for offset against your pension.

If that is correct, the Tax Code for the salary should be 1100L.

The tax code allocated to the pension should be either BR (if all taxable at 20%) or D0 (if all taxable at 40%).

If it's anything other than either of these two codes, you will need to ascertain why it is what it is and whether it is correct. If it is NOT correct, the onus is on you to contact HMRC to let them know they have got it wrong.

[otolith]

Hmm, tax code on my last P60 is 1060L. Sounds like I'd better contact HMRC.

[Eric Mc]

otolith said:

Hmm, tax code on my last P60 is 1060L. Sounds like I'd better contact HMRC.

That was the correct full tax allowance for 2015/16 - 1060L = £10,600 allowances.

The figures for 2016/17 are 1100L = £11,000 tax allowance.

Have a look at a recent salary payslip to see what 2016/17 code is being use.

[otolith]

Cheers Eric.