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Readers’ forum: Why wouldn’t HMRC code out underpayment

27 November 2023
Issue: 4915 / Categories: Forum & Feedback , Investigations
PAYE underpayment

As readers will know working in tax makes you a magnet for family and friends who have tax problems – even simple ones. And I’m always happy to try to help.

Recently a friend asked me why HMRC was telling them they had underpaid tax of about £200 for 2021-22 and which HMRC said it had contacted them about by means of a PA302 – this has not been received. The friend is a PAYE taxpayer and liable to tax at the basic rate only. They have no self-employed or other income.

Having gone through the friend’s P60s and payslips it seems HMRC was correct – ultimately it must have arisen as a result of a PAYE error on the employer’s part. But HMRC’s letter states: ‘Please pay now or contact us if you can’t pay.’ I could not understand why HMRC had not said it would...

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