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Check your income tax 2007-2008
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MSE_Martin
Posts: 8,272 Money Saving Expert
FOR A FULL UPDATE ON TAX RULES SEE
WWW.INCOMETAXCHECKER.COM
Checking tax isn't easy.
Sad to say, checking tax is one of the most complicated scenarios out there - and involves a massive interaction of variables. My aim here therefore, is to give employees at least a quick way to check whether your tax bill looks roughly right.
Who should be checking?
My focus is on those who have only been employees, not those who also have income from self-employment (or other big stuff like buy-to-let income). If so and you've worked the whole year for one company, the likelihood is there isn't a problem (though it's still possible you've got the wrong tax code, but that's a subject for another day).
Yet if you've changed job, stopped working, not handed in your P45 or been on an emergency tax code, or have had more than one job at once, it's possible you've paid too much. Anyone who had multiple jobs, as well as pensioners, could be most severely hit, so get your friends and family to do it too!
How to check if you've paid the right amount.
Gather together your P60s (the form your employer gives you at the end of the tax year) or your P45s (the form you get when you leave employment). Then add up your gross taxable pay and the tax paid from your P60s (or P45s) for the year.
Next, enter the grand total of you gross taxable pay into the green box called "my gross income per year" on the Listen To The Tax Man website and hit calculate. If it brings up a similar tax paid figure in the 'per year' column to what you paid, your payments will probably be correct.
What if it's different?
If it's substantially different it's likely to be because you've been given the wrong tax code at some point (unless you've got substantial benefits or are over 65). At this point, you should consider contacting the HM Revenue and Customs site to see if your info's correct.
Telephone or write to the relevant tax office asking them to check if you have paid the correct tax. The phone call takes about 5 minutes and if there's a problem you will be sent a repayment claim form.
If for some reason you don't have your payslip or P60, you'll need to find out which tax office to contact from your employer. You can then contact the relevant tax office to ask for further help.
Martin
Related Articles:
For more information on tax read the Tax Tony articles:
Taxing Times 5, Taxing Times 4, Taxing Times 3, Taxing Times 2, Taxing Times 1
WWW.INCOMETAXCHECKER.COM
Checking tax isn't easy.
Sad to say, checking tax is one of the most complicated scenarios out there - and involves a massive interaction of variables. My aim here therefore, is to give employees at least a quick way to check whether your tax bill looks roughly right.
Who should be checking?
My focus is on those who have only been employees, not those who also have income from self-employment (or other big stuff like buy-to-let income). If so and you've worked the whole year for one company, the likelihood is there isn't a problem (though it's still possible you've got the wrong tax code, but that's a subject for another day).
Yet if you've changed job, stopped working, not handed in your P45 or been on an emergency tax code, or have had more than one job at once, it's possible you've paid too much. Anyone who had multiple jobs, as well as pensioners, could be most severely hit, so get your friends and family to do it too!
How to check if you've paid the right amount.
Gather together your P60s (the form your employer gives you at the end of the tax year) or your P45s (the form you get when you leave employment). Then add up your gross taxable pay and the tax paid from your P60s (or P45s) for the year.
Next, enter the grand total of you gross taxable pay into the green box called "my gross income per year" on the Listen To The Tax Man website and hit calculate. If it brings up a similar tax paid figure in the 'per year' column to what you paid, your payments will probably be correct.
What if it's different?
If it's substantially different it's likely to be because you've been given the wrong tax code at some point (unless you've got substantial benefits or are over 65). At this point, you should consider contacting the HM Revenue and Customs site to see if your info's correct.
Telephone or write to the relevant tax office asking them to check if you have paid the correct tax. The phone call takes about 5 minutes and if there's a problem you will be sent a repayment claim form.
If for some reason you don't have your payslip or P60, you'll need to find out which tax office to contact from your employer. You can then contact the relevant tax office to ask for further help.
Martin
Related Articles:
For more information on tax read the Tax Tony articles:
Taxing Times 5, Taxing Times 4, Taxing Times 3, Taxing Times 2, Taxing Times 1
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
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Comments
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The Inland Revenue wants to be able to raid people's bank accounts for "unpaid" tax without going to Court first.:eek: Since they get it wrong so often, we the public can not allow that to happen. They are, after all, our servant not our master!
Surely there is some way the hundreds of thousands of recipients of Martin's brilliant e-mail :T can be motivated into opposing this injustice?0 -
I have a job where i recieve a quarterly bonus on top of normal salary. Would this affect the amount of tax paid - Could it mean i've paid too much over the year?0
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Preston: no, your code number and the operation of PAYE will ensure you pay the correct amount of tax on your bonuses.
In general, I am in favour of checking that you are on the right code number during the year. Then mistakes can be put right and you don't end up at the end of the year owing the taxman....or worse, having him owe you!£705,000 raised by client groups in the past 18 mths :beer:0 -
The Inland Revenue wants to be able to raid people's bank accounts for "unpaid" tax without going to Court first.:eek: Since they get it wrong so often, we the public can not allow that to happen. They are, after all, our servant not our master!
Surely there is some way the hundreds of thousands of recipients of Martin's brilliant e-mail :T can be motivated into opposing this injustice?
This has been mentioned on the forums before, and as has been previously stated would only bein the extreemist of circumstances. I.e. those who have the money to pay, but simply don't.
I think it is a good idea, lets stop tax evasion, after all it costs the rest of us for these cheats to get away with it.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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