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Posted Fri, 15 Dec 2023 10:27:40 GMT by
Hi, Slightly confused by the way HICBC is collected through PAYE. There are two options on the online self assessment 1) Pay 2022-2023 underpaid tax by changing 2024-2025 tax code 2) If I owe tax for the HICBC (2023-2024) to pay this through the 2023-2024 tax code A) My self assessment shows I owe £425 for 2022-2023. I selected (1) so they will adjust my tax code for 2024-2025 to reclaim this. Correct? B) I am LIKELY to owe tax for HICBC for the 2023-2024 tax year as I have received payments ~£204/m (x13) = £2652 and would have to repay about 80% of this on current projections (assuming I dont lose my job or get made redundant etc etc). - Will HMRC now adjust my tax code if I select "YES" to option (2), and attempt to reclaim some/all/how much, of the 2023-2024 payment? - If so how is the calculation of how much they reclaim now made? - When I come to do the 2023-2024 SA and I pay through PAYE from now to April 2024, will I owe anything? Again assuming that I don't have a windfall of bonuses or a payrise that kicks in between now and April 2024.
Posted Wed, 20 Dec 2023 08:41:49 GMT by HMRC Admin 5

The 2022/23 balance will be collected in your 2024/25 tax code. If you select yes then your code will be updated for the current 2023/24 tax year to collect the HICBC for 2023/24.
As updated part way through the tax year the system will calculate the HICBC due so far and make an in year adjusmtent to collect this so by the tax year end as long as the estimated income we have to calculate your code is accurate you should not have a large balance to pay when you submit yout 2023/24 tax return. 

Thank you

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