Thanks for the steer. I will definitely call the Tax Office, as I have had 3 tax code notices in 2013 alone, although my only source of income is via PAYE (and Child benefit). The code issued on 10th Feb was 769T & said ('we estimate you will earn over 100k'), then on 23/4 it dropped to 191T ad then on 16/6 to K86 - I did have an incorrect code for year ending 2011 as I had earned over 100k & not informed them (I didn't know I was going to earn +100k, and I didn't know I needed to inform them anyway!) - so I owed over £2,000 in unpaid tax, which I duly paid. Year ending 2012 I received a refund of £700 and then year ending 2013 I owed £1,000 just for child ben. What I don't understand is why my code keeps fluctuating when I have informed them that I expect to earn over 100k for the last 2 tax years, and have paid all owed tax aside from the £1,000 mentioned, which they are collecting through my 2014-2015 code apparently.
My base salary was £75k (increased to £80k w/e 1st March 2014), and my bonuses paid in March 2013 and March 2014 were approx £37k for both years. My income is fairly static, but clearly something is awry for the code to fluctuate so wildly - my Payslip today shows salary of £80k, credit of £37k bonus, less a savings plan of £250 & NI, I cleared £23,800 - which means my £37k bonus nets to about £20k after tax - much less than I thought. Do you think I have been taxed too much for this?
Before I could tell you why the codes kept changing I would need to know what is in each tax code. There is always a time lag between the receipt of new informationy HMRC and them use of it so it is best to take the initiative and call them if you think your code needs looking at.If the K86 code is wrong, ie the deductions in it are excessive,then you may have paid too much tax for 2013/14. You should get your 2014 tax return completed as soon as possible after 5 April to have the discrepancies ironed out. If you put your gross pay to date from your March payslip into the calculator here, it will give you a rough guide as to how much tax you should have paid for 2013/14 but it won't take account of the child benefit charge or of any tax underpaid from an earlier year which has been collected in 2013/14. Leave the tax code box blank. There may be a deduction for the child benefit tax charge in your 2013/14 tax code in any event.
There is information on the child benefit tax charge here.