Has anyone else seen that income tax levels have changed. The level at which we now pay higher rate (40%) has dropped to £35k.

I don’t recall seeing this reported anywhere.

Also, my wife has received a P800 stating she owes money because she has underpaid tax. Now we’ve dug out all her tax code notifications and P60’s etc and can see that she has paid the correct amount of tax based on the notification they provided. Is it correct that they can now demand more money? Its a PAYE scheme (she’s a teacher).

They can go back 4 years (IIRC) for under-paid tax.

Tax bands here: http://www.hmrc.gov.uk/rates/it.htm#2

www.http://listentotaxman.com/

Great site. Far easier to find info than the HMRC site.

Don’t talk to me about PAYE. I just filled in my online tax return for 10/11 and I apparently own £3k….. given the choice i would so much rather be overcharged throughout the year.