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Self Assessment + PAYE tax ??

3 replies

jimmy22 · 23/04/2024 14:47

Hi all, i had a main income (PAYE tax) of about £43000 before tax, and 'sole trader' income of about £2900 in the 23-24 tax year. Now, i do not hit the higher threshold so my self assessment tax (which is separate to my PAYE) should be about £600 but my self assessment on HMRC is coming back at nearly double this...i cant see for any reason why it should be so high... any advice?

OP posts:
ConsistentlyElectrifiedElves · 23/04/2024 15:28

It may be that your employer didn't take enough tax on your salary, or you've got a new taxable item on a P11D that hasn't been reflected on a tax code.

You are given a tax code each year, which is used by HMRC to try and collect an estimate of what your tax will be for the year.

If your only income comes from employment income this is usually pretty accurate as the tax code is based on the tax free personal allowance.

If you were self employed last year, they may have attempted to adapt your tax code to collect the expected tax based on your income from last year. Obviously both salaries and taxable self-employed profits can go up or down, so it really is a best guess on their part.

To calculate the tax on your salary alone, take the total employment income an deduct 12,570. Let's use £43k as an example - £43,000 - £12,570 = £30,430. This is all within the 20% tax bracket, so £30,430 x 20% = £6,086.

Now, compare that to what tax you've had deducted from your salary, per your P60. If you've underpaid on your salary, this will be added to the 20% you're also due to pay on your self employed income.

If you still aren't sure, post accurate figures here from the tax calculation and I'll take a detailed look.

jimmy22 · 23/04/2024 16:34

Thankyou so much, this is what the breakdown looked like but something seemed off -

anyway, i have been a bit dumb and on 23-24 tax self assessment, i used my p60 from 22-23 hence the disparity in the tax amounts.....when i get my 23-24 p60 i will update the self assessment and go from there!

OP posts:
ConsistentlyElectrifiedElves · 23/04/2024 17:15

jimmy22 · 23/04/2024 16:34

Thankyou so much, this is what the breakdown looked like but something seemed off -

anyway, i have been a bit dumb and on 23-24 tax self assessment, i used my p60 from 22-23 hence the disparity in the tax amounts.....when i get my 23-24 p60 i will update the self assessment and go from there!

Ah, that will help!

You might find it's already available online if you start preparing your tax return. The data normally autofills based on payroll data submitted by your employer.

If it's not doing that, leave it a while until you've got your P60 (you should, by law, receive it before 31/05). If you have any Benefits in Kind through your employer, they have until 6th July to submit them/give them to you. You may just have been a bit too keen!

If only all our clients were as keen as you to get their taxes sorted though, January would be a much nicer month!

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