HMRC letter re Tax Code

[ContrataxLtd]

I think what Contratax means they can't charge you interest for not collecting tax through your tax code, only if you reduce your payments on account by too much.

Spot on!

[Yonmons]

It should tell you on the letter where they got that figure from, then call them and speak to them. About 3 years ago I got about 7 notification of codings in the space of 3 months all reducing my code more each time, drove me to distraction, ended up my accountant drafted me a letter to sign and send, which resulted in a more positive coding. I have just got my coding this year and its just under 1100L which I believe is correct (apparently I owe HMRC 50 quid go figure as the yanks say) If they have cocked up, they will make the correction on the system as you speak to them.