P800 calculation

The P800 includes any amounts you owed from an earlier and have not yet paid, and as of now you have not paid the £889 from 2014-15.

And they won't collect it again if your new PAYE code for 2017-18 includes only an adjustment for the difference between the £1,340 and £889.

?1,340 underpaid tax from 2015-16.

e, then collect it again and hope I don't notice?

Ok, it gets better.

I receive another letter today from HMRC telling me that they recently wrot e to me advising me that I have underpaid tax in the sum of £451.20.

Erm, no, that's not what the letter said; it referred to £1,340 underp aid tax.

But here's the kicker; I have to pay the full amount by 23 March because th ey can't collect the underpaid tax because "there is no PAYE source to code the underpayment against".

Are these people for real. Seriously?

It's hard to comment without knowing your PAYE sources, the annual payments from them and the PAYE codes in use against them. But I did just wonder if you have you quoted the whole of their explanation. There used often to be a note which covered that and that the underpayment would more than double the amount of tax they would normally deduct, or result in more than half of the payments being deducted as tax.

I do note though that they are only looking for the difference between the £1,340 and the £889 already coded out (as I suggested they would).

-15 which I am currently paying back via a reduced tax code - it will be fu lly repaid by the end of this tax year.

nce, then collect it again and hope I don't notice?

wrote to me advising me that I have underpaid tax in the sum of £451.2

2. > >

e they can't collect the underpaid tax because "there is no PAYE source to code the underpayment against".

Well I have a pension which has no allowance, it just gets taxed at 20% on the amount and then I have my employment salary which has a tax code which currently takes into account the £889 underpayment from prior years.

I wonder if they've, for whatever reason, looked at my pension instead of m y employment.

Straightforward cases are usually dealt with wholly automatically by HMRC's system these days so that seems unlikely but you'll need to ask HMRC (by phone or online).

Well today I've received yet another piece of correspondence from them advi sing me of my tax code for 2017/2018 and it does indeed simply deduct 5 x £453 from my code.

Si it's all worked out alright in the end.

But what a runaround; I can imagine some poor old soul getting a "pay ? ?450 within three weeks or else" type of letter and panicking.

Left hands and right hands.......