Hi trussell, and welcome to the forum.

The tax you paid last month would have been in relation to a tax period which was prior to the Trust Deed being signed. As such any tax due from that period is a debt which is included in your Trust Deed alongside you other debts and shouldn't be paid separately. That is presumably why they returned the funds to you.

You should speak to your Trustee as they are meant to be gathering in whatever you can reasonably afford, so if you do have spare funds over and above what you are already paying to them then they may request that you pay these into your Trust Deed too.

Hi Kevin, thank you so much for the quick reply. That makes perfect sense!! I really appreciate you getting back to me.

Hi again, having contacted HMRC for confirmation that this was the case (before I contact my Trustee to arrange to pay anything to them) they said they didn’t know and would investigate and write to me within 4 weeks. Today I received not a letter from them but a notification of change to my tax code. The tax code has changed to 12750l X which I think is emergency tax. I’m not worried that they will re claim this tax through my wages (even though as you stated it would have been included as a debt within the trust deed). Can they do that if I have paid the money to my trust deed? Thanks in advance

I’m *now worried!

I'm no expert on tax codes but as I understand it an X just means it is a temporary code that is being used while HMRC investigate further to ensure that you are put onto the correct tax code. As such, I think it is a case of just waiting to see what happens next, but I don't think you should assume that they are going to seek repayment of that money from you.

Thanks so much for responding once again!