Home Money My tax code changed three times and HMRC says I owe £ 3k, if I pay, can I get a refund if it is wrong?

My tax code changed three times and HMRC says I owe £ 3k, if I pay, can I get a refund if it is wrong?

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Deadline for the Tax Declaration: I think HMRC has incorrectly calculated my self -assessment bill

I was promoted and received a decent salary increase in the last fiscal year and also did an additional job for another company, so my fiscal code changed three times and at one time I had two separate tax codes.

I have completed my tax declaration, but I have not submitted it, since it says that I owe it 3,000, which was a big surprise.

I am not convinced that the calculations are correct and I am not convinced that my tax code was correct. I am considering that an accountant verifies this, but it is unlikely that he can do it before January 31.

If I present my tax declaration and pay the invoice and then it turns out that the calculations or my fiscal code were not correct, can I recover HMRC money? Or is it a case once done, is it done?

Deadline for the Tax Declaration: I think HMRC has incorrectly calculated my self -assessment bill

Angharad Carrick this is money says: Tax codes are complicated in the best case, so I understand why you worry about having three changes within a year with the deadline for the tax declaration.

Fortunately, changes in fiscal codes are not rare and will not be just to face this problem.

Many people will face an unexpected tax bill before the deadline for self -assessment taxes on January 31 due to changes in their fiscal code.

HMRC can update its tax code if a new work begins, obtains a promotion, it has additional income or there are changes in its taxable state benefits.

In his case, his tax code has changed three times, which will have led to the HMRC to recalculate the amount of taxes that owes by 2023/24.

However, you say you have calculated and the estimated HMRC invoice is incorrect.

We ask two tax experts about what you should do and if you could receive a refund if HMRC is wrong.

Resolve if your tax code is correct

Ian Futcher, rented financial planning consultant in Quilter says: First, let me calm down by saying that this is common.

In general, everyone will have a fiscal code with letters and numbers. Letters and numbers reflect their personal circumstances. The letters refer to their personal assignments.

For example, a tax code with the letter L It means that you are entitled to standard tax assignment. The number represents the amount of tax free allocation it has. Then, most people with a job will have the Fiscal Code 1257L.

This means that any person with this fiscal code will have a tax free allocation of £ 12,570, and the rest will be taxed depending on whether you are a basic rate taxpayer or a higher taxpayer.

However, it could have many different combinations depending on your individual situation. If you are not sure, HMRC has a practical code verifier that allows you to see what your code means and what tax you should pay.

It becomes more complicated if you have a second job. What will normally happen in this situation is that it will obtain a new fiscal code, usually with the letters. Br. This means that its tax free allocation is used elsewhere, and that income will be taxed at the basic rate.

If you are a higher taxpayer, you will have a different code. As I do not know your personal circumstances, I am making some assumptions here, but potentially, if you get a salary increase in the middle of the fiscal year, that may have pushed it at the highest level for the year, and some of your income before your salary increase is It was too low. This can explain the unexpected load.

Robert Salter, director of the accounting firm Blick Rothenberg says: In addition, Paye’s tax codes are also quite problematic if one has any benefit in kind (for example, private medical insurance or a company’s car), or if the additional income of one has pushed one by one of the ‘edges of Cliffs’ The United Kingdom fiscal system through which people suffer marginal tax rates that are much higher than higher official tax rates of 40 percent or 45 percent. Typical cliff edges include, for example:

  • When someone with children receives child benefit (or their spouse / couple receives this) and win between £ 60,000 – £ 80,000 (or more per year).
  • Alternatively, people who win between £ 100,000 and £ 125,140 per year, will lose the personal tax assignment of £ 12,570 on a basis in favor, with the allocation decreasing by £ 1 for each £ 2 of income within this band. This means that such taxpayers face an effective rate of income tax on its income of 60% instead of the official fiscal band of 40 percent that the government likes to quote.

As such, it is quite common that taxes for all of the above reasons are only ‘captured’ correctly in the self -evaluation tax declaration stage.

While it is impossible to know if any of the above factors are applied in their case, these scenarios show how it is very possible that someone has an insufficient payment of £ 3,000.

How to find out if your tax bill is correct

Angharad Carrick says: He has not provided any detail of how much his tax code won, so it will be difficult to know if his calculations are correct.

You can verify your responsibility by contacting a tax accountant or advisor, who may also suggest any claim for additional tax relief. However, it may be a bit late to do this with the deadline just one week away.

Therefore, it may be better to send your tax declaration now and make the payment before the deadline and then send a modified tax declaration after the deadline.

Futcher says: To make sure to meet the deadline of January 31, it is probably better to present its return now to avoid the fine of £ 100 for the late presentation that HMRC issues.

This does not end; HMRC allows you to submit reviewed accounts up to 12 months from the date of submission of your initial tax declaration. This gives you time to verify your figures with an accountant, and if you have paid excessively any tax, it will be reimbursed.

Salter adds: In very broad terms, one would generally have until January 31, 2026 to submit a modified tax declaration.

Will you receive a HMRC refund?

In addition, if the amended tax declaration reduces your fiscal responsibility, income would reimburse taxes that have been paid in excess.

This may be a direct refund to the taxpayer (although this can sometimes take some time for income to be processed), or by adjusting to the Tax Code of Future, so that one, in effect, pays a tax bill of taxes of Lower paye in a later fiscal year.

In addition, when observing the tax refund point, customers can simply ‘maintain excessive tax’ in the HMRC bank account … With this I mean, the money paid in excess could be compensated with any future fiscal responsibility that the reader hopes to have.

HMRC response

HMRC said that if you have paid taxes and you must obtain a refund after sending your tax declaration, you will inform you in your account.

You can also request a reimbursement directly online by going to the application refund section and following the instructions.

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