If You Owe Tax - What Do You Do About It?

[bluefortress]

Does anyone know how tax works?

I have a message on my online account saying that I have underpaid tax and owe £970. I was made redundant last week so am now on job seekers I will

hopefully have a job as soon as possible. 
 

What will happen with the tax? Will they just take it from my next jobs payslip?

[New Judge]

They will almost certainly adjust your tax code when you resume work to collect the unpaid tax from your pay. This way it will be collected over the remainder of the tax year rather than in one lump.

How did this underpayment come about?

[DTCwordfan]

If you can afford 100 a month, call them and explain the situation and they will set up a plan.....

[bluefortress]

I changed jobs in October 2023 and the job had less hours so I was part time. I am not sure exactly why I underpaid but I imagine the change had something to do with it. 
 

Secondly as my job was working from home I heard that you could get tax relief. I submitted a quick application online and a day later had a message that my 'new tax calculation is ready' and that I owe £970. 
 

I don't think we should have to pay for their mistakes I know that we should check our payslips but at the end of day it's their job to do the calculations. 

[newmodarmy]

Of course you shouldn't "pay for their mistakes" (assuming you mean HMRC), but I doubt they have made a mistake. They usually give an explanation and tell you how they'll recover it. On the plus side you may be due some tax back at some stage from your earnings in April 2024