Quizzes & Puzzles0 min ago
Hmrc - Tax Code And Estimated Earnings
5 Answers
I seem to spend half my life on the phone to HMRC...
Following the submission of my self-assessment form recently I received a new tax code yesterday, and noticed there was a not insignificant amount against the "Estimated tax you owe this year" line.
So, I went onto the online system this morning as the amount didn't seem right, and they have estimated my income for the 2019/2020 tax year to be £90,000 more than it actually will be. 90 bloody grand!!! (christ - I wish).
They've corrected it, and have given me a new tax code, but they couldn't tell me why, which was a little concerning. Given it takes some time for them to inform my employer of new codings, I'm expecting August's pay to be somewhat light!
Anyway - my question. How long have they been 'estimating' pay?
Proof, if proof were ever needed, of the importance to regularly check I guess.
Following the submission of my self-assessment form recently I received a new tax code yesterday, and noticed there was a not insignificant amount against the "Estimated tax you owe this year" line.
So, I went onto the online system this morning as the amount didn't seem right, and they have estimated my income for the 2019/2020 tax year to be £90,000 more than it actually will be. 90 bloody grand!!! (christ - I wish).
They've corrected it, and have given me a new tax code, but they couldn't tell me why, which was a little concerning. Given it takes some time for them to inform my employer of new codings, I'm expecting August's pay to be somewhat light!
Anyway - my question. How long have they been 'estimating' pay?
Proof, if proof were ever needed, of the importance to regularly check I guess.
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.They may have taken your annual income as your monthly income. It can't be easy for them to handle self employed earnings especially I f they fluctuate. Anyway, it's good they sorted it out for you. I too spend too much time on the phone but as I have ten different income sources, and they fluctuate a lot, it's not surprising - but they always get it right in the end by year end
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