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Personal Allowance Deduction

CarolM McKenzie
Posted Sat, 06 Apr 2024 11:18:46 GMT by CarolM McKenzie
I have just received my estimated tax figure for the 6 April 2024 / 25 period. Apparantly I owe £69 from a previous Tax Year, which is fair enough, but what I don't understand is why my Personal Allowance has been reduced by £345 in order to pay this back? - Can HMRC please explain - thank you.
HMRC Admin 5
Posted Tue, 16 Apr 2024 14:58:13 GMT by HMRC Admin 5
Hi

If you pay tax at the basic rate of 20% then on the deduction in your tax code 345 we will collect tax at 20% which will be the £69 underpaid. 

Thank you

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