Stephen

Thank you dearly for this explanation. In short, are we saying that I essentially had the wrong Tax Code and therefore I was being granted full personal tax allowances, which was incorrect, is that right? I’m just wondering how I could have avoided this. A £3.4k underpayment whilst being a PAYE tax payer, just seems like an extreme miss. When my salary changed in Mar-Apr 2022 which took me over 100k, should I have called HMRC and led this, or is there an expectation that this just happens automatically?

All, I've been a self-employed person in the past and closed down my Self Assessment account in 2018. Since then I have gotten several 'rogue' Self Assessment requests for years like 2019, 2020, 2021 - so I've had my fair share of back and forth with HMRC to try and sort these out, cancel penalties etc. Recently I started getting 2023/2023 tax year prompts, so I innately assumed 'here we go again', but I eventually spoke to someone at HMRC who advised that this one is indeed genuine and is solely because I made more than 100k in PAYE salary for that tax year, and the rules at that time meant that you had to submit a Self Assessment return - how I was meant to know this, I'll never quite grasp... Here's where I need your help!!! I'm not a tax calculator whizz, but these numbers shocked me a little. Total income received - £117,449.00 Tax Deducted (Total for the year - £34,408 Tax Code on P60 for that year - 1257L When I punch these details in, they come back saying that I owe - £3,493.20 in Income Tax. Can someone explain this calculation to me, or advise if something looks 'wrong' here. To be short almost £3.5k in tax seems excessive, especially when all my taxes come out as part of usual payroll in a PAYE fashion - how could there be such an error? I would sincerely appreciate your help!!! Stephen