My daughter was made redundant in early April. In Month 1 she received a combination of salary, holiday pay and pay in lieu of notice totalling around £11,500 all of which was subject to PAYE. She was fortunate to get a new job very quicly and recently received a new coding notice withdrawing her personal allowance and putting her on a K code to recover an alledged underpayment for Month 1. The Revenue computer had obviously assumed she was going to get £11,500 every month for the rest of the year. Despite going to her personal tax account and amending her expected income from her new job from £192K to the actual £32K, the account still showed her estimate income for 2019-20 as £173K and an expected tax bill of £63K!
Fortunately (and to my great surprise) a telephone call from her managed to get the code back to a normal 1250L although no explanation could be given as to why all this happened other that 'there was a systems error' which is still showing her as having a large income!
Is this a widespread problem?