HMRC says I need to pay £2440 tax on £1300 earnings. Can anyone help me figure out why?

[CountySheriff]

Not the most exciting topic, sorry, but hoping the mumsnet hive will have some idea or steer me in the right direction.

I pay tax through PAYE as I'm an employee but I do have additional income on the side - mainly freelance work, including some abroad.

I am a high rate tax payer and have not had any underpaid or overpaid tax in any previous years. 2017-2018 tax year PAYE coding notice did not show any tax underpaid.

Completed my self assessment to declare an additional £1300 earnings (additional to my £54000 salary, already taxed through PAYE), and got a massive shock when the calculation showed as £2,440 owing to HMRC. (Plus another £1200 for 'payment on account'!).

Have tried to call them today but the line was busy and kept cutting me off. And now the office is closed.

I can't figure out what is going on.

I've filled in a self assessment return each year for similar amounts and can't work out why this year the tax owing shows up as greater than additional earnings?

Am trying to submit today so any additional money owed goes out of my PAYE rather than a lump sum I need to pay in Jan.

Glad it was useful annie and abbie, and I've certainly learned a lot, including that I should read everything more carefully!

When I got nowhere with the HMRC helphseets and phone helpline , I'd thought I'd ask on Mumsnet and luckily all the MN accountants were online and talkin had her tax software open .

I love a bit of collective problem solving! Cheers everyone!

@CountySheriff that's because all the accountants are busy tryng to persuade their client to send in their information prior to 30th January! And shirking from home so also on MN.

This year I only have 4 personal tax returns to do - whats the bets previous clients are going to reappear on 30 Jan and ask me to do theirs as well?

Kewcumber
whats the bets previous clients are going to reappear on 30 Jan and ask me to do theirs as well?
So true.
I'm expecting the last few to arrive tomorrow as I have a policy of charging double for any delivered after New Year

I have 4 still to be dropped off
and 7 on my shelf in progress

Sorry to hijack but how do I work out the penalty rate I should pay ? I have disclosed rental income through the Let Property campaign but have had the offer rejected because i have not indicated the penalty rate - where do i find that ?

I'm not sure what you mean.
Could you link to the campaign information and I'll see if I can find it in the HMRC manuals

Thanks Ta1kinPeace - the letter says
" You need to decide the rate of penalty that is due based on the circumstances of you not telling us about this income at the correct time. You can find more information regarding the correct amount of penalty on our website, go to www.gov.uk and search "let property campaign"

I've trawled all through the Let property campaign and have gone into the calculators but nowhere can I find anything which says something along the lines of - unpaid tax from 2013 = 20% penalty for example.

I foolishly didn't realise I needed to declare this income as for the the property was inherited , I bought out my sisters share and for the first couple of years we made no profit - the rent received covered the mortgage and the management fees. Really appreciate your help

Try this page
www.hmrc.gov.uk/gds/campaigns/19years-calc-stub.htm
But it might be worth hiring an accountant as they will save you more than they cost

Thanks again Ta1kinpeace - that calculator requires you to enter the penalty rate - which I can't find anywhere. Think I will phone and ask for advice - and yes am considering an accountant.

I cannot make that calculator load which is odd
but yup
an accountant is probably a good investment