Self assessment PAYE but have tax bill

[WHW123]

Hi - last minute I know!!!

So I am completing a self assessment as a friend and I have side hustle which we registered as a partnership - regretting this!

Anyway we made no money from it so I assumed my self assessment would be straight forward. Apparently not.

So I have paye for my main employment and my tax code is slightly higher of 1304L due to registration fees etc which is the same as all my colleagues. My self assessment however has decided I owe £500ish and I can't work out why.

It's not from the partnership I did that first and checked. I have changed employer ( I'm nhs) so trust but both say the tax I've paid is correct.

So I can't work out why they are calculating £500. I've input my expenses so the registration fees etc, but doesn't seem to reduce it much. I know they use the standard code.

Anyone have an idea?

Yes I am last minute with this, but there we go .

Bump

How much was your p11d value

If the partnership made a profit you will owe tax on this income

It hasn't, it was a loss as a new business. So £0 for that...

They ask for money in advance for next year often

The breakdown says it's for 2022-23

Only if your tax liability is £1000 or more for the current year.

Have you entered a loss and the system is saying you are owed £500 perhaps? If you haven't entered your loss, you should make sure you do as you can offset your PAYE taxes against it.

Not unless you owe over £1000 and less than 80% has been collected through PAYE

Check the calculation page

it’s impossible to comment without all the figures

You must have underpaid tax through PAYE if you have correctly entered your partnership income as £0 and thats the only other income on there.

Ring them. I’ve always found them very helpful over the phone.

I had this once. Turned out because I'd changed employing Trusts mid-month, it was my PAYE that was out.

Actually it could also be high income child benefit charge if you earn over £50,000 and claim child benefit

@R41nb0wR0se did your tax code change though? If I run them separate no tax. My tax code is correct with both. If not the majority of nhs nurses/ midwives aren't paying right...

@Jifmicroliquid apparently ringing about your tax return is impossible ha.

Check to see if its an in account charge for this upcoming financial year and then request to reduce your on account charges- which is very simple to do online.

There is very often under/overpaid tax through PAYE when you change employer part way through a tax year. It’s an imperfect system. You will need to manually calculate the tax due on your salary and compare it to the tax you paid, you will probably find the difference is just not enough tax was deducted through PAYE.

Yes they have shut the phone lines! But their webchat is actually quite good.

There shouldn’t be any payments on account as more than 80% of the tax due for the year is deducted via PAYE.

No, there was no change to my tax code. Apparently it's a reasonably common issue - effectively, both employers can end up treating what they're paying you as your only salary that month, effectively giving you a double tax allowance for that month

@WHW123 - you need to add the salaries together and then work out the tax due. Your PAYE code is irrelevant at this point, its HMRCs best guess of getting the right tax due from employment income throughout the year, but it often falls down where people change jobs, have more than one job, other income sources etc.

You can't run them separately as tax codes are cumulative

You have to run the return as a whole

I expect there was an overlap / issue with your change of employer

If it's for 22-23 I suspect the underpayment adjustment has already been collected once they got your p60 last April but the numbers you have are your p60'from April so it thinks you have underpaid. Often happens when you change jobs

Were you paid by both trusts in the one pay period? You might have been given your monthly tax free allowance by both employers. This won't correct itself if your code with your new employer is has an M1 or X in it.