I've been sent a self assessment form, but I'm PAYE???
Discussion
I've no idea why, but HMRC have sent me a notification to complete my self assessment online. I've always been on PAYE since i've ever started working, like most employees, I pay tax every month, which is dealth with by my empoyer.
Are there any obvious reasons why HMRC might ask me to do this? FYI my pay is Sales Compensation based, so varies a bit each month, but not excessively.
I've tried ringing them, but unfortunately as its that time of the year, hold times are massive, so looking for some advice on here.
Thanks!
Are there any obvious reasons why HMRC might ask me to do this? FYI my pay is Sales Compensation based, so varies a bit each month, but not excessively.
I've tried ringing them, but unfortunately as its that time of the year, hold times are massive, so looking for some advice on here.
Thanks!
devnull said:
I've no idea why, but HMRC have sent me a notification to complete my self assessment online. I've always been on PAYE since i've ever started working, like most employees, I pay tax every month, which is dealth with by my empoyer.
Are there any obvious reasons why HMRC might ask me to do this? FYI my pay is Sales Compensation based, so varies a bit each month, but not excessively.
I've tried ringing them, but unfortunately as its that time of the year, hold times are massive, so looking for some advice on here.
Thanks!
If you earn more than £100k total, you need to do it regardless of PAYEAre there any obvious reasons why HMRC might ask me to do this? FYI my pay is Sales Compensation based, so varies a bit each month, but not excessively.
I've tried ringing them, but unfortunately as its that time of the year, hold times are massive, so looking for some advice on here.
Thanks!
Which said:
You'll also need to fill in a tax return if:
You're an employee or pensioner with an annual income of £100,000 or more;
You have a pre-tax investment income of £10,000 or more;
You're a 'name' at the Lloyd's of London insurance market;
You're a minister of religion;
You're a trustee or representative of someone who has died.
You'll usually also be sent a tax return if:
You have untaxed income – from investment, land or property, or from overseas
You make capital gains above the annual exempt amount (£11,100 for 2015-16)
You were required to fill in a tax return last year
You're a pensioner who gets reduced age-related allowance, though you may be sent a special short version which requires fewer details.
It is possible to pay tax via PAYE and also complete a self-assessment tax return. This is common if you receive a private pension and also if you receive investment income.
If you are an employee but also self-employed (running a business part-time) you might also be required make a self-assessment tax return. You are expected to show details of your employment, earnings and tax deducted via PAYE.
Any of them?You're an employee or pensioner with an annual income of £100,000 or more;
You have a pre-tax investment income of £10,000 or more;
You're a 'name' at the Lloyd's of London insurance market;
You're a minister of religion;
You're a trustee or representative of someone who has died.
You'll usually also be sent a tax return if:
You have untaxed income – from investment, land or property, or from overseas
You make capital gains above the annual exempt amount (£11,100 for 2015-16)
You were required to fill in a tax return last year
You're a pensioner who gets reduced age-related allowance, though you may be sent a special short version which requires fewer details.
It is possible to pay tax via PAYE and also complete a self-assessment tax return. This is common if you receive a private pension and also if you receive investment income.
If you are an employee but also self-employed (running a business part-time) you might also be required make a self-assessment tax return. You are expected to show details of your employment, earnings and tax deducted via PAYE.
Hmm, i'll have to download my P60 for that year, but it *might* be the 100k one, maybe. I did have a larger than usual bonus at the end of the year, but not sure if it pushed me over the threshold, I certainly paid a mega amount of tax that month.
Let's assume it was down to earnings. Are these self assessments to verfiy your earnings vs your P60 to ensure they are correct and tally up, or is there usually an instance that it is likely that HMRC owe me (unlikely!) or I owe them, even though my finance dept will calculate the tax for me?
Let's assume it was down to earnings. Are these self assessments to verfiy your earnings vs your P60 to ensure they are correct and tally up, or is there usually an instance that it is likely that HMRC owe me (unlikely!) or I owe them, even though my finance dept will calculate the tax for me?
sidicks said:
devnull said:
I see, thanks. The request is for Tax Year 14/15 - whilst I'm a 40% Tax payer, I didn't more than 100k.
If you're a 40% taxpayer, how have you arranged to pay the extra tax due on your savings?Many, many people who are mainly taxed under PAYE have to complete tax returns as well. There are lots of reasons why this might be the case.
If you earn enough from your salary to put you over the higher rate or additional rate tax thresholds, this means that EVERYTHING you receive in the way of income will be subject to tax at 40% or even higher.
If that is the case, it is expected that the PAYE system will deal correctly with the higher rates of tax applicable to your salary (although it doesn't always work as advertised and many people pay incorrect tax through their PAYE deductions - sometime too much, sometimes too little)..
However, if you have income outside of your employment, such as bank or building society interest or dividends from shares you own, then the only way you can account for and pay over the higher rate tax due on this additional income is by completing a self assessment tax return.
M<any people now have to complete Self Assessment tax forms because they earn over £50,000 band also receive Child Benefit. If that is the case, some, if not all, of the Child B3enefit needs to be paid back. This is done through the Self Assessment system.
And, of course, most people know that those who run their own self employed businesses or have rental income need to submit a Self Assessment tax return each year.
All is not bad though, because you may also be eligible for higher rate tax relief on items such as Gift Aided charity donations, or pension contributions you have made in the tax year. Again, Self Assessment is a good way of making these claims.
If you earn enough from your salary to put you over the higher rate or additional rate tax thresholds, this means that EVERYTHING you receive in the way of income will be subject to tax at 40% or even higher.
If that is the case, it is expected that the PAYE system will deal correctly with the higher rates of tax applicable to your salary (although it doesn't always work as advertised and many people pay incorrect tax through their PAYE deductions - sometime too much, sometimes too little)..
However, if you have income outside of your employment, such as bank or building society interest or dividends from shares you own, then the only way you can account for and pay over the higher rate tax due on this additional income is by completing a self assessment tax return.
M<any people now have to complete Self Assessment tax forms because they earn over £50,000 band also receive Child Benefit. If that is the case, some, if not all, of the Child B3enefit needs to be paid back. This is done through the Self Assessment system.
And, of course, most people know that those who run their own self employed businesses or have rental income need to submit a Self Assessment tax return each year.
All is not bad though, because you may also be eligible for higher rate tax relief on items such as Gift Aided charity donations, or pension contributions you have made in the tax year. Again, Self Assessment is a good way of making these claims.
devnull said:
Hmm, i'll have to download my P60 for that year, but it *might* be the 100k one, maybe. I did have a larger than usual bonus at the end of the year, but not sure if it pushed me over the threshold, I certainly paid a mega amount of tax that month.
Let's assume it was down to earnings. Are these self assessments to verfiy your earnings vs your P60 to ensure they are correct and tally up, or is there usually an instance that it is likely that HMRC owe me (unlikely!) or I owe them, even though my finance dept will calculate the tax for me?
You enter the earnings from your P60 and the tax deducted into the online tax return. The self assessment system does the calculation based on your tax code and your earnings to calculate the tax that should have been deducted. If it calculates the same figure as on your p60 then you owe no tax. If it's different then you will either get a refund or pay additional tax. It's not uncommon for there to be slight variations between payroll calculated tax and the HMRC calculation,Let's assume it was down to earnings. Are these self assessments to verfiy your earnings vs your P60 to ensure they are correct and tally up, or is there usually an instance that it is likely that HMRC owe me (unlikely!) or I owe them, even though my finance dept will calculate the tax for me?
plasticpig said:
You enter the earnings from your P60 and the tax deducted into the online tax return. The self assessment system does the calculation based on your tax code and your earnings to calculate the tax that should have been deducted. If it calculates the same figure as on your p60 then you owe no tax. If it's different then you will either get a refund or pay additional tax. It's not uncommon for there to be slight variations between payroll calculated tax and the HMRC calculation,
That is incorrect - the SA system will calculate the tax based on the entries made for not only the P60 but benefits/expenses from the employment, other income, tax reliefs due (pensions and gift aid being most common) and the personal allowance due based on the taxpayers circumstances - nothing to do with the tax code which is purely a vehicle to collecting an estimate of the correct tax based on prior year facts in most cases.David
sidicks said:
devnull said:
I am not sure I follow what relevance this has in this instance?
How have you calculated the amount of extra tax you need to pay without completing a tax return?!sumo69 said:
That is incorrect - the SA system will calculate the tax based on the entries made for not only the P60 but benefits/expenses from the employment, other income, tax reliefs due (pensions and gift aid being most common) and the personal allowance due based on the taxpayers circumstances - nothing to do with the tax code which is purely a vehicle to collecting an estimate of the correct tax based on prior year facts in most cases.
David
I am well aware of how the SA system works. I was referring specifically to OP's question about the Income and tax deducted amounts on the P60 vs the SA calculation based on those amounts. The SA calculation of the tax to deduct based on the income on the P60 and the tax code will often differ from the employers payroll software calculations. David
Sage, Iris, Xero and Pegasus payroll packages can all produce results where the calculation of the tax to deduct will differ by £1 or £2 from the SA calculation. These are all packages which have been tested and recognized by HMRC. That's with the standard tax code throughout the tax year in question. Changes in tax code in the year and K codes can produce bigger differences.
Eric Mc said:
tuffer said:
Seeing as HMRC are forcing me to complete a Tax Return and I am an incompetent fool and need an accountant to do it for me, can I claim the £600 they charge me against my Tax bill?
That depends.I am assuming that you are not self employed or don't have rental income.
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