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You owe £890. To collect this we have reduced your Personal Allowance by £1978

Posted Wed, 24 May 2023 14:21:59 GMT by
I have an underpayment from a previous year but I don't understand this statement. Why if I owe £890 is my personal allowance reduced by £1,978?
HMRC Admin 20
Posted Wed, 31 May 2023 07:52:46 GMT by HMRC Admin 20
Hi Anthony Crook,

You pay tax on the figure included in your code at your highest rate of tax that you pay.

Thank you.

 

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