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  • FIRST POST
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:10 PM
    • 946Posts
    • 374Thanks
    scaredofdebt
    Tax Rate for Self Assessment
    • #1
    • 11th Jan 18, 2:10 PM
    Tax Rate for Self Assessment 11th Jan 18 at 2:10 PM
    Hi,

    I work full time and am on PAYE, I earned £25k approx gross in the 2016-17 tax year.

    I also do some freelance work, I am doing my SA return and my net income from this (after allowable deductions) is £3,239.

    I was expecting the tax bill for that to be a straight 20% ie around £640 but the SA site is saying it's £869 which works out at around 28%

    What am I missing? I'm not earning enough to pay additional NI am I?

    Thanks,

    David
    Make £2018 in 2018 Challenge - Total to date £29
Page 1
    • BoGoF
    • By BoGoF 11th Jan 18, 2:16 PM
    • 2,839 Posts
    • 2,086 Thanks
    BoGoF
    • #2
    • 11th Jan 18, 2:16 PM
    • #2
    • 11th Jan 18, 2:16 PM
    Do you have a student loan?
    • BoGoF
    • By BoGoF 11th Jan 18, 2:19 PM
    • 2,839 Posts
    • 2,086 Thanks
    BoGoF
    • #3
    • 11th Jan 18, 2:19 PM
    • #3
    • 11th Jan 18, 2:19 PM
    If not then the additional tax above the 20% on your self-employed income must be due to underpaid PAYE. Did you have and taxable bemefits from employment?
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:20 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    • #4
    • 11th Jan 18, 2:20 PM
    • #4
    • 11th Jan 18, 2:20 PM
    No.

    I've just had a look at their calculation and it looks like my employer hasn't been deducting enough tax, which I find hard to beleive as it's a blue chip company with 10k plus employees.

    I wonder if my company pension payments might be an issue?

    They seem to be saying I've underpaid through PAYE by £200 odd over the year.

    I do have £30 odd a month deducted from my salary as I have bought some extra holiday, wonder if that's it?

    Thanks for any help.
    Make £2018 in 2018 Challenge - Total to date £29
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:22 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    • #5
    • 11th Jan 18, 2:22 PM
    • #5
    • 11th Jan 18, 2:22 PM
    If not then the additional tax above the 20% on your self-employed income must be due to underpaid PAYE. Did you have and taxable bemefits from employment?
    Originally posted by BoGoF
    I posted my above before I saw this. Not really sure about benefits, just the company pension really and the holidays I buy.
    Make £2018 in 2018 Challenge - Total to date £29
    • BoGoF
    • By BoGoF 11th Jan 18, 2:22 PM
    • 2,839 Posts
    • 2,086 Thanks
    BoGoF
    • #6
    • 11th Jan 18, 2:22 PM
    • #6
    • 11th Jan 18, 2:22 PM
    Did you enter your P60 figures?

    Care to share them and your tax code.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:28 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    • #7
    • 11th Jan 18, 2:28 PM
    • #7
    • 11th Jan 18, 2:28 PM
    Yeah:

    £25,188 Pay (gross)
    £2,615.80 Tax

    Final Tax Code 1201M

    HMRC look to have my tax code wrong as they've only given me £11k allowance but that code would denote £12k?

    Thanks.
    Make £2018 in 2018 Challenge - Total to date £29
    • BoGoF
    • By BoGoF 11th Jan 18, 2:30 PM
    • 2,839 Posts
    • 2,086 Thanks
    BoGoF
    • #8
    • 11th Jan 18, 2:30 PM
    • #8
    • 11th Jan 18, 2:30 PM
    That tax code will suggest you have claimed expenses or tax relief on something. You need to find out how your code was made up.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:39 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    • #9
    • 11th Jan 18, 2:39 PM
    • #9
    • 11th Jan 18, 2:39 PM
    I've registered for the marriage allowance, think it's £20 a month or something I pay less tax.

    https://www.gov.uk/marriage-allowance

    My wife earns less than me so I believe it's a portion of her allowance that's transferred to me. Filled the forms in online over a year ago.
    Make £2018 in 2018 Challenge - Total to date £29
    • BoGoF
    • By BoGoF 11th Jan 18, 2:42 PM
    • 2,839 Posts
    • 2,086 Thanks
    BoGoF
    You need to claim that relief in your Tax Return.
    • whitewitch21
    • By whitewitch21 11th Jan 18, 2:45 PM
    • 41 Posts
    • 13 Thanks
    whitewitch21
    I've registered for the marriage allowance, think it's £20 a month or something I pay less tax.

    https://www.gov.uk/marriage-allowance

    My wife earns less than me so I believe it's a portion of her allowance that's transferred to me. Filled the forms in online over a year ago.
    Originally posted by scaredofdebt
    Have you claimed that on your return? Could explain the discrepancy.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:47 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    Thanks - do you know where I would claim that, can't see anywhere obvious on the online forms.
    Make £2018 in 2018 Challenge - Total to date £29
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:50 PM
    • 946 Posts
    • 374 Thanks
    scaredofdebt
    http://forums.moneysavingexpert.com/showthread.php?t=5443240
    Make £2018 in 2018 Challenge - Total to date £29
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