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Underpaid tax Box 7 Tax Calculation Summary

GeorgeGeorge Feels At HomeRegistered Posts: 43
Can anybody ease the pain? It's driving me mad.

The correct amount of tax has been deducted by employer as shown on P60, by way of adjusted tax code (adjusted to collect underpaid tax from previous year). This has been inserted correctly on the Employment page of the tax return. HMRC have amended the return, because the underpaid tax was not put in box 7 of the tax return. Why when I put the underpaid tax figure in box 7 is the tax liability increased by the same amount? Hasn't this tax been taken in the adjusted code?

Thanks for your help.

Comments

  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    If you dont put the figure in Box 7 then the calculation will show that tax has been overcollected during the year because they won't know that part of that tax being collected actually relates to an earlier year.

    For anyone with PAYE income I ALWAYS phone HMRC to check whether there is anything to be put in box 7. Saves an embarassing phone call to the client when HMRC correct the return.
  • GeorgeGeorge Feels At Home Registered Posts: 43
    Thanks, Dean.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    For anyone with PAYE income I ALWAYS phone HMRC to check whether there is anything to be put in box 7. Saves an embarassing phone call to the client when HMRC correct the return.
    Thanks for that tip Dean, box 7 entries always boggle my little brain!
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