Any accountants- explain my tax please!

[eatshootsleaves]

Puzzled. Net income around £8500. Tiny bit of interest added (£100) from savings. Tax return showing £450 in credit (though bastards haven't paid me back all year!) and now when I've completed the return it tells me I owe £5 in tax. How can this be when I'm well under the personal allowance? Is NI racking it up?

[balletgirlmum]

Have you made any charitable donations this year?

[lighteningirl]

Yes

[balletgirlmum]

When you donated did you tick the box for the charity to reclaim the tax? If you did but you earn under the income tax limit then you will have to pay that amount by back to HMRC.

[balletgirlmum]

And your class 4 NI CONTRIBUTIONS will be around £40 plus £145 class 2

[eatshootsleaves]

No I don't tick the charity box.

I pay class 2 NI as I go over the year every quarter.
I still don't see how I owe any tax at all especially when I was £450 in credit and the PA is almost £10K.

This seems to happen every year- they say I owe them tax then refund it in a few months. This year is the first year I've earned so little as I cut back on my hours.

[balletgirlmum]

Are they asking for a payment on account?

[balletgirlmum]

They shouldn't be with those figures but you never know.

[TalkinPeace]

NI Limit is £8065
Tax limit is £10,000

Class 4 is 9% of everything over the limit
Class 2 is £2 per week