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Quick income tax question

(6 Posts)
brunette123 Sat 15-Aug-15 12:24:56

I have an annual personal allowance of 10k. For the tax year ended April 15 I have submitted my tax return. My employment income was only around half of my allowance so no tax due. I have a few shares and received dividends on them and have some savings and received interest - not much. HMRC calculate I owe tax and am not sure why given that I have over 5k personal allowance unused. Any ideas? I can call HMRC on Monday but wondered if I have misunderstood or overlooked something - I didn't think I would have to pay any tax given that all income from all sources is below 10k
many thanks in advance

scarlets Sat 15-Aug-15 18:02:41

Did you include Gift Aid on the return?

Could you post a copy/screen shot of the sa302 (with your name and ref numbers hidden of course).

brunette123 Sat 15-Aug-15 19:04:47

hi
yes I included some gift aid on there as I pay money each month to charities - I thought this did not mean any tax liability to me am I wrong? So am I having to pay tax because I have made charitable donations? thanks again

scarlets Sat 15-Aug-15 21:43:57

Hi brunette. I suspected as much.

You declared on your tax return that you had "Gift Aided" charitable donations. This means that the charity/charities would have reclaimed the tax from HMRC (25p per pound). However, you were not a taxpayer, so the tax was actually not reclaimable. So, you are being asked to cover it now.

There is more info here under the heading entitled "paying..."

www.gov.uk/donating-to-charity/gift-aid

brunette123 Sun 16-Aug-15 05:00:18

thank you so much - of course my fault - for many years I was a higher rate tax payer so it made sense - will have to organise things differently now.
Thank you for taking the trouble to clarify things for me.

scarlets Sun 16-Aug-15 09:57:18

No problem!

I suggest that you inform the charities that you're no longer a taxpayer, asap. Then, next year, on your 15/16 return, remember to only include the charitable payments from Apr '15 - Aug '15 in the Gift Aid box.

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