Tax code adjustments in self-assessment

Hi, The self-assessment online form has a section "Underpaid tax included in PAYE coding (Page 2 of 2)". There is an explanation on this page "Look at your 6 April 2022 to 5 April 2023 PAYE Coding Notice (P2). If it includes the message 'our estimate of the underpayment for the earlier part of the year is £xxxxx' then put this amount in the box above." I received a tax code notice mail in October 2022 with the following sections: - "This totals your tax-free amount" and a negative number next to it £-xxxx - "Estimated tax you owe (this year)" and a positive number next to it £xxx I wanted to confirm - is it true that the "Estimated tax you owe (this year)" value is different from "our estimate of the underpayment for the earlier part of the year is £xxxxx". And I need to enter zero in the form if I don't have "our estimate of the underpayment for the earlier part of the year is £xxxxx" section in the tax code notice? Thanks

Hi,

If you have an underpayment from an earlier tax year included in your 2022 to 2023 tax code then this would need to be entered in the Self Assessment. If you are unsure if this is the case then you would need to contact our Self Assessment team to check the code.

Self Assessment: general enquiries

Thank you.

Hi, I don't have any underpayments from previous tax years. The section "Estimated tax you owe (this year)" was in an in-year tax code adjustment letter from HMRC with tax code K. (Because tax code K reduces tax-free amount) I am unsure whether "Estimated tax you owe (this year)" value from the tax code adjustment letter is different from thing that is asked in the form: "our estimate of the underpayment for the earlier part of the year is £xxxxx". The wording looks different, but pretty similar.

Hi,

If the estimate is an in year adjustment then it would be nil at that section as not an estimate from an earlier tax year. 

Thank you.

Thank you for your answer! So is it true that all three following sections in the "Underpaid tax and other debts" module apply only for underpayments for an earlier tax year (not 2022-2023)? - "Underpaid tax included in PAYE coding (Page 1 of 2)" - "Underpaid tax included in PAYE coding (Page 2 of 2)" - "Other debts" Initially I was asking about "Underpaid tax included in PAYE coding (Page 2 of 2)"

Hi,

No, 'Page 2 of 2' refers to an underpayment of tax that has been calculated in-year in 22/23, that had been scheduled to be coded out in 23/24. If this amount is indeed present in your 23/24 code and is being repaid this way, include the amount on 'Underpaid tax included in PAYE coding (Page 2 of 2)' of your 22/23 return

This will ensure you are not taxed twice for this amount.

Thank you.

Hi I have received 2 notice of codings for 23/24. August said that I owed £790 and the note said that my tax code would be adjusted to collect this amount before April 5th 24. I then received a second notice of Coding in December saying that I owed£394 and that my tax code would be adjusted to collect this amount before April 5th 24. Now I am completing my self assessment return for 23-24, do I have to include these amounts in the underpaid tax sections still? Many thanks, Mark

Hi Mark,
If your coding notice confirms that these amounts are In Year Adjustments (IYAs) for 23/24, then you do not need to include these in your return - these are shortfalls in 23/24  in-year tax that the adjustment to your code will deal with.
If your coding notice confirms the amounts given are actually from an earlier tax year, you would need to include them in your 23/24 return.
If you would like us to check these amounts, and confirm whether to include them in your return, contact us by webchat or phone via
Self Assessment: general enquiries 
Thank you.