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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I retired from the Army in April from a £124000 salary to a

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I retired from the Army in April from a £124000 salary to a £62000 pension. After a long wait on hold to HMRC, my tax code was changed to reinstate my personal allowance and professional fees allowance. If I now submit my tax return based on last years salary, it seems likely they will change my code back, try to claim 'unpaid tax' and I will be back to trying to speak to them again to restore my new code.
How can I avoid this?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Let me take a look at this and I'll get back to you in a bit.
Expert:  TonyTax replied 2 years ago.
Hi again.
This can and does happen I'm afraid especially if a tax return is submitted electronically to HMRC as opposed to on paper. I've noticed that the HMRC computer reviews the current tax code in the light of a tax return submission on the day of submission and makes changes which are incorrect based on the current situation.
The only way I've found around this is to put a note in the white space to tell HMRC that the current income is below £100,000 or to call a day or two after submitting a tax return to make sure that the code has not been changed and if it has to get it changed back. It is a highly unsatisfactory state of affairs though I have to say sometimes the worse doesn't happen and all goes according to plan. That inconsistency is even more annoying.
I hope this helps but let me know if you have any further questions.
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