Underpayment of tax letter for the past 2 years - haven't moved jobs

[GlitteryGreen]

Hey,

Does anybody know why I would've received a letter saying I've underpaid my income tax for 2 years running, despite being in the same job since August 2019?

I am a PAYE employee, all goes through payroll, no additional income beyond that. I do have healthcare as a taxable benefit but this is clearly shown on my personal tax account on Gov Gateway so should be accounted for. Wage has increased by about £1k per year, and I do get a bonus each Feb - could it be to do with either of these things??

I checked my payslip today and my tax code has 'M1' on the end, which seems to mean it's an emergency code?

I tried calling HMRC but the automated line just hangs up on you when the operators are all busy, I can't even wait on hold.

Just wondering if anyone has had anything similar or knows why it might be?

I had that for 8 years but perseverance calling HMRC will pay off in the the long run 👍👍👍

Effective tax return deadline is 28th February this year so you're not going to get much joy out of the helplines until March.

It's normal to have tax over or underpaid by a small amount if you've had a bonus.

Probably due to the bonus in February I'm guessing. It will have thrown out the System that was calculating your estimated earnings for current financial year. It will possibly think you'll earn that amount again in March.

Could also be any number of things sometimes things are left on a tax account from previous years - like car/medical benefit fuel allowance/income on any savings. Or could be an incorrectly given tax refund.

Keep calling you'll get through eventually and they'll investigate. (Try calling early as poss in the day - its usually the quietest!)

Thanks, I'll keep trying to get through after the 1st then! It's frustrating they won't even let you wait on hold.

I guess maybe it could be the bonuses then? But then I've had bonuses in various jobs over the past decade and have never had this before.

I'll just have to keep trying and see what they say. Happy to pay whatever I need to but just feel it's a bit weird to pay the wrong tax 2 years running when you're in the same job.

I'm in the same position and now they've drastically reduced my tax code, by seemingly twice the amount they say I've underpaid. I'm also PAYE, get a (not huge) bonus, have BUPA etc.