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Tax you owe (earlier year)

Dan
Posted Wed, 03 Jul 2024 16:10:58 GMT by Dan
My tax code was recently changed to 892L reducing my tax free allowance by £3960. However the amount I owe from an earlier tax year (because of the HICBC) is £1584. Is anyone able to explain why my tax free allowance was reduced by so much more than the amount I apparently owe and if I need to query this with HMRC?
HMRC Admin 10 Response
Posted Mon, 08 Jul 2024 11:24:47 GMT by HMRC Admin 10 Response
Hi
If you pay tax at the higher rate 40% then on the restriction in your tax code 3960 we will collect tax at 40% on this which will be the underpayment amount £1584. If you want to check that your tax code is correct you will need to contact HMRC to access your record Income Tax: general enquiries

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