Tax bill please help

[LuckyLopez]

Sorry. Wrong area I know.

I have my bill to pay but keep finding different amounts. The tax bill when I did it said £293 now I've gone back to pay it says £424 in the summary but the £293 is still on my bill.

So if my income was £9896 and I have no complicated affairs just a regular £9440 PA what should the right amount be?? Please!!!!

What's PA?

Sorry, personal allowance. Of course. You only appear to have earned £440 over the tax threshold so I can't imagine the higher figure is correct. The smaller one seems a bit much as well!

Personal allowance?

From my basic understanding the salary you need to pay tax on is £424, this is the amount you have earnt above your personal allowance. You then pay tax of a certain percentage which they have worked out as the £200 figure, sorry on phone can't see original figures. So you have to pay the £200 amount.

Well it includes class 4 nic which the threshold is £7000 ish at 9%.

293 does still look too high seems to be around 68% tax

So 20 per cent basic rate tax on your £446 profit should be round about £89.20 unless I'm missing something?

That is probably correct then, 9% of earnings above 7000 and 20% of earnings above personal allowance

Are you self employed? 293 is about right for tax and class 4 NI on those figures.

£260.64 NI 84.80 tax doesn't add up either

Agree with wizard pay the lower amount then sort out Monday

Is it your first year of being self-employed? Because they often charge you 50% of your first bill as a payment 'on account' towards your next year's tax bill.

Class 4 NI limit is 7755. 293 is right.

Is some of it "payment on account" for next year? They often ask you in your first year to pay tax due last year and half of the following year "on account". You can apply to reduce the on account payments if you think you'll earn less than the year before but otherwise it's useful as "tax in the bank" when next year comes around.

Payments on account only kick in when the liability is more than 1k.

Ok I think I have it ...

NI is £192.69 (found on a separate line in my tax return)

Does that sound about right?

No it's not my first year (I just usually pay when I do the tax return) and I don't pay on account for the next year and as someone else just said my tax bill isn't high enough to do that.

Yep, would expect 91.20 tax, plus 192.69 NI, and it's close to 293

Well, a tenner out...

No spot on clash thanks!!

I paid £283.89 sorry mistake in my op.

Hey OP

Your tax bill is as follows

INCOME TAX

(9896 - 9440) / 0.2 = £91.20

CLASS 4 NIC

(9896 - 7755) / 0.09 = £192.69

CLASS 2 NIC

2.70 x 52 = £140.40

Total
£91.20
£192.69
£140.40
---
424.29

I'm a certified bookkeeper with a diploma in self assessment tax returns. Inbox me if you have any more questions.

Sorry everyone just reading up thread a bit- when you're self employed you're also liable to pay class 2 NIC at a rate of £2.70 per week! This is where the difference has come from!