Self assessment question
Discussion
PAYE does not and cannot always calculate your tax liability correctly during the tax year. As a result, some people find that the PAYE collected through their salary is either higher than their true tax liability or lower. This can happen for all sorts of reasons -
they have a complicated tax Benefit in Kind
they have complicated issues surrounding pension contributions
they pay tax at the higher rates (40% or 45%)
HMRC just got it wrong (not unheard of).
The secret with PAYE working correctly DURING the tax year is checking that the PAYE Coding is correct and, if it is not, contacting HMRC during the tax year to notify them that the coding is not correct.
HMRC assumes that every PAYE employee has a good working knowledge of the PAYE coding system and is fully switched on in their reviewing and monitoring of their PAYE codes.
Of course, the reality is much different.
Is their any specific aspect of your financial affairs that would make it likely that your PAYE coding is struggling to match reality?
they have a complicated tax Benefit in Kind
they have complicated issues surrounding pension contributions
they pay tax at the higher rates (40% or 45%)
HMRC just got it wrong (not unheard of).
The secret with PAYE working correctly DURING the tax year is checking that the PAYE Coding is correct and, if it is not, contacting HMRC during the tax year to notify them that the coding is not correct.
HMRC assumes that every PAYE employee has a good working knowledge of the PAYE coding system and is fully switched on in their reviewing and monitoring of their PAYE codes.
Of course, the reality is much different.
Is their any specific aspect of your financial affairs that would make it likely that your PAYE coding is struggling to match reality?
Sheepshanks said:
Do you know why you're on self-assessment?
Did some freelance work back in 2009. Had to do them ever since. Eric Mc said:
PAYE does not and cannot always calculate your tax liability correctly during the tax year. As a result, some people find that the PAYE collected through their salary is either higher than their true tax liability or lower. This can happen for all sorts of reasons -
they have a complicated tax Benefit in Kind
they have complicated issues surrounding pension contributions
they pay tax at the higher rates (40% or 45%)
HMRC just got it wrong (not unheard of).
The secret with PAYE working correctly DURING the tax year is checking that the PAYE Coding is correct and, if it is not, contacting HMRC during the tax year to notify them that the coding is not correct.
HMRC assumes that every PAYE employee has a good working knowledge of the PAYE coding system and is fully switched on in their reviewing and monitoring of their PAYE codes.
Of course, the reality is much different.
Is their any specific aspect of your financial affairs that would make it likely that your PAYE coding is struggling to match reality?
I don't have, and certainly during that tax year anything complicated. The years before I had some contributions to my pension, but nothing during the year in question. Very simple P11D as well. they have a complicated tax Benefit in Kind
they have complicated issues surrounding pension contributions
they pay tax at the higher rates (40% or 45%)
HMRC just got it wrong (not unheard of).
The secret with PAYE working correctly DURING the tax year is checking that the PAYE Coding is correct and, if it is not, contacting HMRC during the tax year to notify them that the coding is not correct.
HMRC assumes that every PAYE employee has a good working knowledge of the PAYE coding system and is fully switched on in their reviewing and monitoring of their PAYE codes.
Of course, the reality is much different.
Is their any specific aspect of your financial affairs that would make it likely that your PAYE coding is struggling to match reality?
The code about matches reality, I think. It's fairly normal.
However, in light of the date, can I submit and pay now and take it up with them later if I can't get through on the phone? Or is it like a parking ticket where by as when you pay, you lose any right to appeal?
As for my tax code this month, God knows what's going on, but that's a whole other thread...
Eric Mc said:
The secret with PAYE working correctly DURING the tax year is checking that the PAYE Coding is correct and, if it is not, contacting HMRC during the tax year to notify them that the coding is not correct. HMRC assumes that every PAYE employee has a good working knowledge of the PAYE coding system and is fully switched on in their reviewing and monitoring of their PAYE codes.
Despite me having the same 2 jobs for 18 years and the same company car since 2004, in some tax years my tax coding notices are updated 5 or 6 times, i completely ignore them as its all squared through a tax return but it does make me wonder how they source and manage their information. theboyfold said:
I don't have, and certainly during that tax year anything complicated. The years before I had some contributions to my pension, but nothing during the year in question. Very simple P11D as well.
The code about matches reality, I think. It's fairly normal.
However, in light of the date, can I submit and pay now and take it up with them later if I can't get through on the phone? Or is it like a parking ticket where by as when you pay, you lose any right to appeal?
As for my tax code this month, God knows what's going on, but that's a whole other thread...
Well if your PAYE affairs really are straightforward and the PAYE Coding was correct, the only thing that must be creating your Self Assessment liability has to be, by default, your self employed profits.The code about matches reality, I think. It's fairly normal.
However, in light of the date, can I submit and pay now and take it up with them later if I can't get through on the phone? Or is it like a parking ticket where by as when you pay, you lose any right to appeal?
As for my tax code this month, God knows what's going on, but that's a whole other thread...
Are they higher than last year by any chance?
Did they pitch you into the higher rate brackets when in previous years they didn't?
Have you factored in the Class 2 and Class 4 NI aspects of the self assessment liability?
Was there any issue with Child Benefit?
Eric Mc said:
Well if your PAYE affairs really are straightforward and the PAYE Coding was correct, the only thing that must be creating your Self Assessment liability has to be, by default, your self employed profits.
Are they higher than last year by any chance?
Did they pitch you into the higher rate brackets when in previous years they didn't?
Have you factored in the Class 2 and Class 4 NI aspects of the self assessment liability?
Was there any issue with Child Benefit?
I don't have any self employed profits, that's the thing. I haven't for 7 years. The only wrinkle was for a couple of years I topped up my pension after being paid, so I could claim back a percentage of that. Haven't done that for a couple of years though. So it's just salary and medical coverage provided from the company. Are they higher than last year by any chance?
Did they pitch you into the higher rate brackets when in previous years they didn't?
Have you factored in the Class 2 and Class 4 NI aspects of the self assessment liability?
Was there any issue with Child Benefit?
Can you have a look at my original question please, can I pay now and dispute when they can pick up the phone after the deadline?
No issue with client benefits
Edited by theboyfold on Monday 29th January 10:04
theboyfold said:
Can you have a look at my original question please, can I pay now and dispute when they can pick up the phone after the deadline?
If you end up paying too much tax you can claim it back.Without being patronising have you put everything in the correct boxes on the self assessment? Seems strange if your PAYE details match what you've put in the self assessment for HMRC to be asking for another £700. Normally they would have done their best to collect it via PAYE through the year.
trickywoo said:
If you end up paying too much tax you can claim it back.
Without being patronising have you put everything in the correct boxes on the self assessment? Seems strange if your PAYE details match what you've put in the self assessment for HMRC to be asking for another £700. Normally they would have done their best to collect it via PAYE through the year.
Yep. Literally just my P60 and P11D details plus personal account interest, which is already dealt with at source. These were already in the form so I didn't even have to enter that. Without being patronising have you put everything in the correct boxes on the self assessment? Seems strange if your PAYE details match what you've put in the self assessment for HMRC to be asking for another £700. Normally they would have done their best to collect it via PAYE through the year.
I think I will try and call them again tonight(!) and tomorrow, and if I can't get through just get it back later. Hopefully
Thanks
Without being patronising, HMRC won’t believe they’ve made any mistake. The onus is on you to declare and pay the tax correctly, and your P60 should tie up with the tax paid, tax code and salary. Does it?
Is the issue that you have apparently underpaid tax for the year by £700, or that you have additional income/information on your tax return that causes £700 additional to be payable?
Is the issue that you have apparently underpaid tax for the year by £700, or that you have additional income/information on your tax return that causes £700 additional to be payable?
essayer said:
Without being patronising, HMRC won’t believe they’ve made any mistake. The onus is on you to declare and pay the tax correctly, and your P60 should tie up with the tax paid, tax code and salary. Does it?
Is the issue that you have apparently underpaid tax for the year by £700, or that you have additional income/information on your tax return that causes £700 additional to be payable?
The issue is that they claim I have underpaid by £700. I have no additional income.Is the issue that you have apparently underpaid tax for the year by £700, or that you have additional income/information on your tax return that causes £700 additional to be payable?
theboyfold said:
However, in light of the date, can I submit and pay now and take it up with them later if I can't get through on the phone? Or is it like a parking ticket where by as when you pay, you lose any right to appeal?
It's fairly simple sums so it's unlikely to be wrong. You just haven't been paying enough tax for some reason. What was your tax code for 16/17? Perhaps they assumed you were continuing to make extra pension contributions.
theboyfold said:
The issue is that they claim I have underpaid by £700. I have no additional income.
So your employer has incorrectly calculated your tax? What happens when you put your salary + tax code into an online calculator, does it match your P60 totals or is that under?You’ll need to pay it before the 31st, for sure.
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