Working out how much tax you pay in a year...

[AMacA]

Folks,

The tax man's chasing me for £750 of unpaid tax. Before I phone up I'm looking to clarify my numbers.

To work out how much tax you should pay in a year, is this right;

Taxable pay £30000
Minus personal benefit £4520 (452L tax code)
Equals £25480 x 20% = £5096.00 tax due

Can someone point me in the right direction if what I've written is wrong.

Cheers!

[Deva Link]

That's correct. Your tax code is lower than a standard code so you may not have paid tax in past years on whatever it is that is causing the code reduction (private health insurance, or something else your employer pays for?).

[surfymark]

Are you PAYE? If so: http://www.thesalarycalculator.co.uk/compare.php I have done the compare thing as that gives you the 2010 as well as 2011 I think.

HTH
M

[AMacA]

Yep, got a company car which brings the code down.

[Eric Mc]

What tax year does the £750 relate to?

[AMacA]

Eric - Taxyear 10/11.

[Eric Mc]

So, you have carried out a tax calculation for 2010/11 and it shows that you should have paid £750 more than was deducted under PAYE?

[AMacA]

HMRC carried out a calculation which shows me as being £750 underpaid I tax. I've done my own and found the tax to be about £2.50 (two pounds fifty, not a typo).

Confused doesn't cover it!!

[Eric Mc]

I'd have to see a copy of their calculation and your calculation to see where the differences arise.

[AMacA]

Sorted! Turns out they had made a mistake with the taxable car benefit.

[bleesh]

AMacA said:

Sorted! Turns out they had made a mistake with the taxable car benefit.

Really?? That's shocking!!!

[Vixpy1]

AMacA said:

Sorted! Turns out they had made a mistake with the taxable car benefit.

HMRC making a mistake ?

Never happens