Underpaid tax for earlier years in your tax code for 2022-23 - explained

Hi, I've just completed my first self assessment online and I believe I incorrectly selected the need to add "Underpaid tax for earlier years in your tax code for 2022-23" to my calculation. Based on last year self assessment, there was a balace due that I paid in full. So, I am not sure I needed to tick the "add Underpaid tax for earlier years in your tax code for 2022-23" box. Also I am not able to reconcile the number for that underpaid tax to 2021-22 statement, so I am not sure how it is calculated. Any pointer is really appreciated. Thanks

Hi,

If you paid the balance in full then would not have been collected in your tax code. If you made an entry in error once recevied the tax return would be amended to remove and the calculation updated accordingly.

On the tax return if no underpayment collected in your tax code it will show 0.00 in that box and you would not need to amend. 

Thank you.

I am not sure I understand the message. I have now checked the last 5 years and the tax amount paid is always very close to the tax owed. Only in 2021-22 there was a large gap (ca. £3,200) paid in full before 31st Jan 23. For the fiscal year 22-23, I can see once again that the tax paid is close to the tax owed (only £820 difference), but the "add Underpaid tax for earlier years in your tax code for 2022-23" adds to the amount owed £3,600. It seems that my payment was not registered. I will enquire on the phone to ensure this is amended

Hi,

Yes, in this case as we would need to access your account to check the underpayment collected in the code so you will need to contact our Self Assessment team.

Self Assessment: general enquiries

Thank you.