Hmrc Tax Codes

[feebletoe1492]

I'm PAYE. In what universe would I owe HMRC a tax rebate of £199, thus lowering my tax threshold by a couple of thousand this tax year?

[Redhelen72]

Have you asked HmRC?

[feebletoe1492]

Let's just say since I turned 60 I have a small pension. Last month it took a hit because of the tax threshold... When I called HMRC it was a debt of £76 ..now it's nearly £200...I have paid taxes all my life and never have been self employed.I just don't get it ..I guess I will call them again about these inconsistencies again.( Another 45 mins)

[Hopkirk]

Did you mean to say rebate? That's when they give you money, which would be nice.

[ToraToraTora]

it usually means they have identified some income that you have not paid tax on. They then adjust your code to collect it over the current tax year.

[bobbinwales]

Am sure theres a simple explanation. Is tax deducted from your pension at source? If thats a 'no' and your total income means your over the tax allowance you owe the tax due. If the pension was taxed at basic rate but your a higher rate taxpayer or will be when this extra incomes added on then you'll owe the differance.

[Peter Pedant]

they do a reconciliation at the end of the tax year
= formal add-up

so the paye code is by and large irrelevant in the large picture.

Mine goes all over the place and I think I have two ( and my pension tax code tries to take into account dividents from shares. it doesnt work very well )

[but I was over assessed for tax at £32 000 - no, not extra income of £32 000 to be taxed at 50% - £32 000
and it was all because the tax man's finger slipped !
So £200 just makes me laugh)

[feebletoe1492]

Lol...it's more about me moaning about my tax code and them apologizing to put it right...but then charging more...I'm not gonna complain anymore otherwise it will be £32,000

[tonyav]

Happened the other way round for me earlier this year, I had a tax rebate ( a nice one to ) the only thing I could put it down to was when I was furloughed the year before ( I didn't phone HMRC in case they had made a mistake and wanted it back ).