Well X doesn’t take into account the £500 you owed from the previous year, just what you are required to pay based on your 2014-2015 salary and benefits and so they’re adding it on.
Yes, but it says they alread collected it in the 2014/15 tax code?
The £500 is in box 7 on the PDF generated from the online form…
“Underpaid tax for earlier years included in your
tax code for 2014–15 – enter the amount shown as
‘amount of underpaid tax for earlier years’ from
your P2, ‘PAYE Coding Notice’”
No, this means that it wasn’t paid previously and is therefore added to 14/15 calculation (code). Doesn’t explain why it wasn’t collected earlier – increase in earnings 13/14? A capital gain? Dividends?
Are you doing it online?
Yes online, I’d assumed when it says added to 14/15 tax code it meas the tax code for last year rather than the calculation, seems very ambiguous if they write code when they mean calculation. They explained it wasn’t collected earlier because I went onto self assessment in 13/14 and they didn’t have time to reflect some changes in the 13/14 return.
Seems tax code did change for 14/15 year but not mid tax year. Also it seems I was on a M1 emergency code for most of 13/14 if that makes a difference.
I get several letters every year and I have one job, PAYE and my Salary hasn’t changed for years….
They had my old address as a correspondence address until fairly recently so wasn’t getting coding notices