Skip to main content

beta This is a new service – your feedback will help us to improve it.

Personal Allowance Deduction

Answer
CarolM McKenzie
Posted about a year ago 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 Response
Posted 12 months ago by HMRC Admin 5 Response
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

You must be signed in to post in this forum.