Adjust income with HMRC or not?

[Butter Face]

If HMRC expect me to earn £XX,XXX and it actually looks like I'm going to earn £12k less than that amount is it worth me adjusting to that amount with HMRC now or waiting until april and submitting my self assessment (has to be done as I earn over the threshold for paying back child benefit, although this year will be just under it)

I assume that if I adjust now, HMRC will adjust my tax code for the next 3 months to 'catch up' or I can just keep on the current estimate and when I self assess they will repay me the overpayment?

Any thoughts/input appreciated.

[BatForcePC]

I change my predicted income through HMRC's website as things become clearer through the year, this means my tax code reflects my earnings and I am paying roughly the correct amount of tax in the year.

If you have overpaid tax and wait for self assessment, you won't get a refund until the following year....

[Butter Face]

BatForcePC said:

If you have overpaid tax and wait for self assessment, you won't get a refund until the following year....

Are you sure? I've completed self assessment for a few years now and each time HMRC have refunded overpayment directly to my bank account in a number of weeks?!

[BatForcePC]

Butter Face said:

Are you sure? I've completed self assessment for a few years now and each time HMRC have refunded overpayment directly to my bank account in a number of weeks?!

To be honest, that was an assumption on my behalf, I'm rubbish at doing my self assessment and typically don't get it done until January... Your comment makes me think I should be doing it earlier!

If you can do your self assessment in April and HMRC refund you promptly, I guess it doesn't really matter!

[Butter Face]

Yeah that's my thoughts too. I normally smash mine out ASAP in april otherwise I forget

[bogie]

Up to you really, if you adjust now, it often takes 4-6 weeks to get to employer and get tax adjusted. I do my self assessment each year in April, as soon as I have my end of year statement from employer, then the tax rebate is in my account in under a week.

I have variable expenses and pension contributions throughout the year, and prefer to under estimate and know I have a bit of a rebate bonus to come back rather than a mystery tax bill to look forward to.