Tax Refund on Payslip PAYE

Hello All I wondered if someone could help me. I am employed and received my income through PAYE. In November I received a letter from HMRC advising to check if I need to pay the Higher Child Tax Benefit Charge for tax year 2022-2023. Having gone through all my paperwork I believe I may have been just over the threshold and was advised by HMRC to complete a Self Assessment to check. Having returned the Self Assessment over the Festive period (first time), instead of me owing money, it was showing that I was owed a repayment of tax of £250.00 I was then having doubts whether I had completed the assessment correctly and went to seek help from a colleague who has also just completed there one. It transpires I made an error with my Penison Contributions which I then input in the incorrect box. I then amended my return and to my shock I was then advised I was owed a repayment of £657.00. My Tax code was also changed to 1123L. Having then agreed with the new figures, I requested the repayment to my bank account which I received today. Now this is where it gets interesting, having also just received my pay today, where I would usually pay £585.00 in tax per month, the figure is showing -£32.86 !!! I now have no idea what is going on but this doesnt seem correct, in theory I have now received 2 repayments as havent paid any tax on Jans payslip! Surely this isnt correct and I am now really concerned about this! I have never had any issus before until I filed the self assessment for the first time!! Does anyone have any ideas, guess I will need to talk to my employer and also call HMRC Many thanks Chris

Hi,

The repayment will be from your claim for relief on your pension contributions in your 2022/23 Self Assessment tax return. When claimed on the tax return it will be updated to include it in your tax code going forward 2023/24. The change in the 2023/24 code has then resulted in a refund for this tax year.

The pension relief can only be claimed if the pension contributions come from your net wage. If the pension contributions are deducted from your wage before the tax is calculated then relief already received. If you want to check the code you will need to contact our Self Assessment team. 

Self Assessment: general enquiries

Thank you.