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tax credits and tax codes

(7 Posts)
feelathome Wed 14-Nov-12 18:17:19

well, I called them, and it seems I underpaid by £33 last yer. No idea how, but I'm not going to spend any time worrying about such as small amount.

riksti Wed 14-Nov-12 07:08:24

Intriguing - didn't know that. Thanks!

feelathome Wed 14-Nov-12 07:03:22

thanks everyone, looks like im going to have to call them, doesnt it.

ChablisLover Wed 14-Nov-12 06:09:10

From April 2012 so for tax codes issued for 12:13, hmrc have started to include adjustments for debts owed to them including tax debts and tax credit overpayments up to £3k

www.ion.icaew.com/TaxFaculty/23784

riksti Tue 13-Nov-12 23:30:35

No, tax credits do not affect your tax code. There are a few reasons why it may be lower though. Do you get benefits through work? Has there been an underpayment in the previous tax year that they are now collecting? Do you get a pension or another taxable benefit? (note: tax credits are not taxable)

ChablisLover Tue 13-Nov-12 20:38:54

Could be

Hmrc have started to collect overpayments through paye codes

Best thing is to look at the paperwork which hmrc sent you detailing your tax code as it should give you some form of explanation as to the reductions

If you don't understand it, ring hmrc or ask here again.

feelathome Tue 13-Nov-12 19:33:00

I have realised today that most peoples tax code is 810L if they are employees with no other complicated things going on.
Mine is lower than that, and I don't understand why.
Could it be cos I get some tax credits? Or some other reason I haven't thought of?
thanks

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