PAYE11020 - Coding: codes: how they are used and calculated: P2 automatic notes

There are a number of automatically generated notes that will be printed on a customer's P2.

The appropriate note will be included when the system recognises changes during the year to a tax code under specific circumstances. These circumstances may include where an estimated, ‘potential underpayment’ (PUP) or In Year Adjustment (IYA) has been calculated, for example as a result of reduced net coded allowances.

Below gives explanations for in-year code changes which the system recognises to generate the note shown.

Circumstance the system recognises - PUP present and SA indicator is not set - calculated prior 2 July 2017. 

Automatic note on P2 - You may pay too little tax although we are changing your tax code(s), you may still not pay enough tax by 5 April <YYYY>.  We think the amount you will owe HMRC is £<PUP>.  We will let you know if this amount is right when we check your pay and tax information at the end of the tax year.  We usually collect the tax in equal instalments by increasing the tax deducted from your wages, salary or pension for 12 months from 6 April.

Circumstance the system recognises - PUP present and SA indicator is set - calculated prior 2 July 2017. 

Automatic note on P2 - You may pay too little tax although we are changing your tax code(s), you may still not pay enough tax by April <YYYY>.  We think the amount you will owe HMRC is £<PUP>.  We will let you know if this amount is right when we look at your tax return for the year. 

From 2 July 2017 the following automatic notes are automatically generated where an In Year Adjustment (IYA) is created

Circumstance the system recognises -IYA present and can be collected in full over CY and SA indicator is set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £<IYAR> to collect the £<IYA> tax in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>. 

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and can be collected in full over CY and SA indicator is set and an earlier year underpayment is being collected

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £<IYAR> to collect the £<IYA> tax in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>. This is in addition to the tax you owe from an earlier year.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and part can be collected over CY and remainder in CY+1 and SA indicator is not set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. We are unable to collect the amount in full this year based on your current income. We have therefore included an adjustment to reduce your tax-free allowance by £<IYAR> so we can collect £<IYA> in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>.

We will collect the remaining amount of £<IYA_CY+1> in equal instalments by including an adjustment to reduce your tax-free allowance by increasing the tax deducted from your wages, salary or pension from 6 April <YYYY>.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and part can be collected over CY and remainder in CY+1 and SA indicator is set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. We are unable to collect the amount in full this year based on your current income. We have therefore included an adjustment to reduce your tax-free allowance by £<IYAR> so we can collect £<IYA> in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>.

We will confirm the exact amount you owe and collect any remaining tax when we look at your tax return for the year.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and part can be collected over CY and remainder in CY+1 and an earlier year underpayment is being collected and SA indicator is not set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. We are unable to collect the amount in full this year based on your current income. We have therefore included an adjustment to reduce your tax-free allowance by £<IYAR> so we can collect £<IYA> in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>. This is in addition to the tax you owe from an earlier year.

We will collect the remaining amount of £<IYA_CY+1> in equal instalments by including an adjustment to reduce your tax-free allowance by increasing the tax deducted from your wage, salary or pension from 6 April <YYYY>.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and part can be collected over CY and an earlier year underpayment is being collected and SA indicator is set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA>. We are unable to collect the amount in full this year based on your current income. We have therefore included an adjustment to reduce your tax-free allowance by £<IYAR> so we can collect £<IYA> in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £<IYA> is paid by 5 April <YYYY>. This is in addition to the tax you owe from an earlier year.

We will confirm the exact amount you owe and collect any remaining tax when we look at your tax return for the year

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and can only be collected in CY+1 and SA indicator not is set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA_CY+1>. We are unable to collect the amount this year based on your current income. We will therefore include an adjustment to reduce your tax-free allowance to collect the £<IYA> in equal instalments by increasing the tax deducted from your wage, salary or pension from 6 April <YYYY>.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to www.gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.

Circumstance the system recognises - IYA present and can only be collected in CY+1 and SA indicator is set

Automatic note on P2 - Estimated tax you owe (this year) Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £<IYA_CY+1>. We are unable to collect the amount this year based on your current income. We will confirm the exact amount you owe and collect any tax when we look at your tax return for the year.

The easiest way to check or query this adjustment is by using your Personal Tax Account, go to gov.uk/personal-tax-account where you can view or change your information and contact us if you need additional support or if it will cause financial difficulty.