Changes to personal tax allowance

[justchecking1]

Just had my personal tax allowance through for 2021-22 and it's gone from £12500 to £3500.

Haven't had a change in circumstance and don't owe any tax. Salary the same as last year.

Is this how HMRC are clawing back the COVID costs?!

Has anyone else had theirs?

They haven't changed the tax allowance by that much. It's going up to £12750 or in that ballpark.

Your allowance going down to £3500 means that they think you've underpaid your tax by a lot. Alternatively do you have a benefit like a company car that you might not have paid tax on yet?

If you think you don't owe any tax, you need to contact them, or else they'll be taking too much tax from your April salary onwards.

Have you had a pay rise to over 100k? Only that if you don’t receive benefits in kind and don’t owe tax from previous years then for every £2 you go over £100k you loose £1 of personal tax allowance. So if you earned over 100k in 20/21 and were still on 12500l code then you will owe for that year although that wouldn’t be reflected in the coding notice you’ve just received. The coding notice will say the reason for the change but not explain it. Prob just says tax owed for previous years

@BarbaraofSeville - £12,570

Either - A Mistake

Or - B HMRC catching up with other income eg buy to let or investments

Have you logged into your HMRC account? I usually find slightly more info in there