I am completely and utterly confused by how HMRC go about their business. Got a letter informing me to complete a self assessment due to HICBC for tax year 2022/23. Turned out that I was under the threshold and owed over £1k tax back.
I was under the impression, mainly because HMRC web pages are clear as mud, that self assessment is the vehicle for collecting HICBC. So why has my PAYE code been adjusted to take into account child benefit? It makes no sense to me at all. Not to mention that the numbers do not add up at all.
you now get Job expenses worth £288
your Child Benefit has been increased from £3,267 to £4,564
your Estimated tax you owe this year has been increased from £7,078 to £9,246
Where has this £4564 come from? Thats over twice the annual amount for 2023/24.
Apparently I owe 2k more in tax? Not sure where they get that from.
And to cap it all off, when you look at the how we calculated the tax code it states i've underpaid £1216. Again, a number seemingly plucked out of thin air. It just simply does not add up when I owe 2k more in tax.
Very confused by all this. Can anyone provide any reasonable explanation?