PAYE and Tax Advice - Worth it?
Discussion
100% of my income is PAYE, and I earn the exact same amount each month + an annual bonus.
Despite this I always seem to be having tax code issues and being told I've underpaid tax. I had to pay a decent amount for 22-23, and am still on a K tax code.
It's becoming a pain, is it worth going to see a personal tax advisor to go through it all, or is there very little that can be done as PAYE?
Despite this I always seem to be having tax code issues and being told I've underpaid tax. I had to pay a decent amount for 22-23, and am still on a K tax code.
It's becoming a pain, is it worth going to see a personal tax advisor to go through it all, or is there very little that can be done as PAYE?
Highly recommend getting access to your tax records via the government gateway. PAYE should keep things straight forward, but if you don’t know what the HMRC office know about you you’ll be chasing your tail possibly for years.
Access to your tax records is straight forward , free and I suggest you do that before you pay for any advice. You may simply be able to pay what you owe, correct the mistakes etc and start fresh this year
Access to your tax records is straight forward , free and I suggest you do that before you pay for any advice. You may simply be able to pay what you owe, correct the mistakes etc and start fresh this year
oldaudi said:
Highly recommend getting access to your tax records via the government gateway. PAYE should keep things straight forward, but if you don’t know what the HMRC office know about you you’ll be chasing your tail possibly for years.
Access to your tax records is straight forward , free and I suggest you do that before you pay for any advice. You may simply be able to pay what you owe, correct the mistakes etc and start fresh this year
definitely thisAccess to your tax records is straight forward , free and I suggest you do that before you pay for any advice. You may simply be able to pay what you owe, correct the mistakes etc and start fresh this year
get an online id for HMRC and it opens up a tonne of stuff you can check PAYE, pensions etc.
Cheers - I have all that data but it doesn't give me the understanding I need.
For example, I can see how much I've earned, plus tax and NI paid in historic years.
What I'm less clear on is whether this is correct or not. They say "You did not pay enough Income Tax for a previous tax year" but there's no indication of which year that refers to or why. I assume it's 2022-2023, but I've already paid the amount due after my self assessment...
For example, I can see how much I've earned, plus tax and NI paid in historic years.
What I'm less clear on is whether this is correct or not. They say "You did not pay enough Income Tax for a previous tax year" but there's no indication of which year that refers to or why. I assume it's 2022-2023, but I've already paid the amount due after my self assessment...
Mr Scruff said:
Cheers - I have all that data but it doesn't give me the understanding I need.
For example, I can see how much I've earned, plus tax and NI paid in historic years.
What I'm less clear on is whether this is correct or not. They say "You did not pay enough Income Tax for a previous tax year" but there's no indication of which year that refers to or why. I assume it's 2022-2023, but I've already paid the amount due after my self assessment...
It should be very easy to calculate if you've paid the right tax or not.For example, I can see how much I've earned, plus tax and NI paid in historic years.
What I'm less clear on is whether this is correct or not. They say "You did not pay enough Income Tax for a previous tax year" but there's no indication of which year that refers to or why. I assume it's 2022-2023, but I've already paid the amount due after my self assessment...
Put your annual earnings into a tax calculator & it should do it all for you. There will be an option to put in pension contributions (usually as a % of earnings), include the amount you get from employer too (assuming that's a gross contribution).
Are you breaching the £100k taxable allowance; this impacts your personal allowance? That will trigger the need for a SA & also why HMRC saying you've not paid enough tax
Other considerations are:
- tax on savings interest (current limit is £500ish), easy to hit with the change in interest rates if you have a lot of money sitting in accounts
- any other income streams: rental properties, anything on your statement which might be deemed an income
Edited by SV_WDC on Friday 19th April 12:52
Mr Scruff said:
Indeed - certainly not aligned with the "tax doesn't need to be taxing" strap line! I'm a data analyst, so usually quite good with figures, but feel like I'm not working with all the info here (hence the question).
They stopped using that motto decades ago - because it was laughable then and it's even more laughable now.I can only assume that the payment in Jan sorted out underpayment 2022-2023 (which looks right) and despite 2023-2024 figures not been made available yet I've somehow underpaid again, hence the adjustment. Just frustrating that I have to wait for the system to crunch all the numbers before finding out.
Should be relatively simple, as all PAYE. I am in the higher banding but that would at worst mean £0 personal allowance, whereas right now I have a negative personal allowance.
Should be relatively simple, as all PAYE. I am in the higher banding but that would at worst mean £0 personal allowance, whereas right now I have a negative personal allowance.
I have faced similar issues on what feels like an annual basis - usually crop up around pay rise/bonus time. I have found the best option is to keep an eye on your tax code at the start of the tax year and when your bonus falls and give HMRC a call the moment it changes. 9/10 times the change isnt quite right and it gets corrected there and then. Saves any surprises at the end of the year.
You can end up being in the call queue for some time but worth it imo
You can end up being in the call queue for some time but worth it imo
HMRC have a web page that tells you what they think you're going to earn through PAYE this year. If it doesn't look right, you can enter the figures that you think are accurate and if they approve, your tax code will be changed.
Bonuses & share schemes can be difficult for HMRC to predict accurately, but you can tell them in advance if you have a better idea.
The same site also shows prior years earnings & tax calculations.
Sometimes you need to call when you really can't figure it out. I had it once where I'd entered a personal pension contribution on my tax return, but misunderstood something & HMRC had it as a contribution I'd make every year and gave me credit for that in my tax code - then I was hit with a bill to correct that.
Bonuses & share schemes can be difficult for HMRC to predict accurately, but you can tell them in advance if you have a better idea.
The same site also shows prior years earnings & tax calculations.
Sometimes you need to call when you really can't figure it out. I had it once where I'd entered a personal pension contribution on my tax return, but misunderstood something & HMRC had it as a contribution I'd make every year and gave me credit for that in my tax code - then I was hit with a bill to correct that.
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