PAYE Tax changes from 4 years ago

[TheDrownedApe]

Sorry if its been discussd to death, i had a quick check but didnt see anythjng obvious.

I left the Army in 2016 and since have been in receipt of a pension and It's always been taxed at BR.

Work full time and have salary taxed as usual PAYE. However since 2018 HMRC has constantly fiddled with my tax code and set me multiple letters (probably 15 in 5 years) stating I under paid/overpaid tax etc etc.

Last week I had 3 letters from 2019, 2020 and 2021 saying I had under paid £900 in 2019, over paid £500 in 2020 and overpaid in 2021. I received a cheque for £152.

In 2022/23 my employer paid me extra for additional work. I logged into HMRC and checked my expected PAYE earnings (I assume my employer gives HMRC this info) and it was about £6k lower than my expected income. I gave them an adjusted amount and, as expected, my tax code changed to offset the extra earnings.

Then the next day I received another letter saying my tax code for 2023/24 is being adjusted to 724l "less adjustment for rate bands". Yet nothing has changed in 6 years!!

Getting fricking sick of what seems mismanagement, how can they NOW suggest i underpaid, or overpaid, 3 or 4 years ago? I have only ever had one salary or one pension and one salary

So my question. How can I best put my historical tax affairs to bed? Do I ask my employer for old P60s and do it myself (bearing in mind HMRC have just adjusted 3 past years)? Do I phone HMRC and ask them?

Advice sought please PH experts

[Rufus Stone]

Looks like you are drifting in and out of the 40% tax bracket. That's always going to be difficult to sort via the tax code adjustments as the system.

Do you really mean HMRC have advised you your 2023-24 tax code already?

[TheDrownedApe]

Rufus Stone said:

Looks like you are drifting in and out of the 40% tax bracket. That's always going to be difficult to sort via the tax code adjustments as the system.

Do you really mean HMRC have advised you your 2023-24 tax code already?

Yup, around the 40% bracket. However under until this year when the extra work pushed me over.

Yup, which suggests to me I've massively underpaid in this FY even though I gave them an accurate assessment in Oct 22 and they adjusted my code.

[Eric Mc]

The problem with the PAYE Coding system is that HMRC tries to PREDICT what your situation WILL be BEFORE the tax year starts based on your situtaion in the PREVIOUS tax year.

Despite the fact that they have all-seeing powers (it seems at times), they are not Mystic Meg and are not always good at predicting the future.

What YOU should do is let them know IMMEDIATELY you realise they have got your coding wrong.

Don't forget, the basic rule in UK taxation is that, no matter how many mistakes and cock-ups HMRC makes, it is ALWAYS the taxpayer's fault.

[TheDrownedApe]

No advice then?

[Kirkmoly]

TheDrownedApe said:

No advice then?

Always file a tax return as soon as the year is over and you get your P60. Then you’ll know where you stand.

[Eric Mc]

Check yiour tax code and speak to HMRC if you don't think it's correct.

[TheDrownedApe]

Kirkmoly said:

Always file a tax return as soon as the year is over and you get your P60. Then you’ll know where you stand.

Thanks but as I referred to, it's PAYE, not self assessmemt

[TheDrownedApe]

Eric Mc said:

Check yiour tax code and speak to HMRC if you don't think it's correct.

Thanks.....I know that. Its like you didn't even read my post. But hey how I shall try elsewhere

[Eric Mc]

It’s the only solution - apart from registering with HMRC to submit a self assessment tax return