Dh got a whacking tax bill y/day!!

[triplets]

I don`t understand it, he has just recently filled an a self assessment form. Y/day he got a letter saying he owes over £5000 before Jan 2013! He always pays his tax, we live on three pensions and they are taxed at source. Our annual income is £27,000 can this be right?

Doesn't sound right - you need to call HMRC I'm afraid.

Why did he complete a SA form if he is taxed at source? Does this bill relate to 2011-12 or a previous tax year and is it for 5k or tax due on 5k of income. My mum had an issue where her full personal allowance was also offset against a second pension which meant she had underpaid, and it went back a tax year or two.

Definitely call HMRC. It's very easy to complete a tax form incorrectly as I found the year I entered the purchase price of a company car rather than the taxable value. For the future, can I recommend an excellent software product called 'TaxCalc' for SA returns? Costs about £25, guides you through the forms by the hand and keeps a running total at the top of the page whether they owe you or you owe them. I've had no nasty surprises since using it.

(@LIZS my parents complete SA forms despite having pensions and other income taxed at source. My mother usually finds she's paid the right amount whereas my father always gets back a few hundred.)

When he completed the tax return did he put in the amount of tax that was deducted from each source of income? You'd be amazed how many people dont fill in those boxes because they think HMRC already has that info.

Look at the tax calculation to see if tax already deducted is credited then ring HMRC

Ring HMRC. If that doesn't help much, speak to a local accountant. DH's firm charges about £200 (I think) for a basic tax return. He would have a chat to a potential new client on the phone for free.

Thank you everyone for your advice, we will contact them tomorrow. Today was my Mums funeral, I can`t believe she has gone. x