REALLY confused about my tax return.

skintchick

I fill in a tax return because I am self-employed with a little job as well as being full-time employed.

I filled in my tax return with one of my ft jobs and my self employed stuff and it said I owed £80.

Then I added the other job I did ft employed for about four months over which time i earned 10,985 and paid tax of 1,825, and when i checked the calculation it then said I owed £671! :eek:

This CANNOT be right, surely?

I'm also confised because there is no space to tell them about the Class 4 (? I think they are class 4) NICs I have paid which surely should reduce my bill?

Can anyone explain why it would jump so much? I paid tax on both ft jobs, and in the self-employment, on which I will be due to pay tax, I only earned about £1600 for the whole YEAR so how can I owe nearly £700?

Please help!

Tiggergirl

I'm guessing you used up all of your personal allowance and 10% tax band with the first ft job and self-employed stuff you entered.

With the second job, the tax would be £2,416 (22% of 10,985), so if you deduct the 1,825 already paid that gives you £591 left to pay. Add on the £80 you owe from the other job and self-employment and that gives you the £671.

If you are prepared to say how much you earned from the first job and self-employed stuff as well as your tax code, we should be able to see if you have used up your personal allowance and 10% tax band.

Nanuq

Your post is a little confusing: did you have one or two full-time PAYE jobs, (in addition to your self-employed job) over the tax year?

All NI contributions, including class 4, are totally seperate from tax, if I remember correctly, so would have no effect on your tax bill.

skintchick

I had two full-time jobs, one after the other with no breaks, and also had a self-employed writing job I did from home once a month or so, for which I only earned around £1600 gross, obviously not PAYE.

The first job I did as a casual on payroll for about four months (would need to look up exact dates) and earned I think £120 a day, and the second job was as a proper employee and I earned £23,000pa.

I'm not sure of my tax code offhand - perhaps it is not very generous. I also realise I have said on the return I'm married but I wasn;t married for that tax year so maybe that has made a difference?

I just don;t HAVE £671 and would have to riad joint savings which is not fair on OH so not really sure what to do. It just doesn;t seem at all right - usually I pay around £80 or I actually have a rebate so this feels very wrong as I earned less for that year then I have done in previous years.

Thanks for all your help and if you need exact dates etc then I will get my file out and provide them.

chrisbur

There still seem to be some figures missing to work this out.
Your first job for four months was for gross 10985 and you paid tax of 1825.
Is that correct?
Your next job was for the rest of the year and you say this was for 23000pa. What was the actual amount paid in last tax year and how much tax did you pay on this?
The self employed earnings of 1600 is this your profit figure, if not what is the profit figure? I assume no tax has been paid on this.

mrkbrrws

Just after you changed jobs in 2007/08, did you notice if you were deducted an unusually low amount of tax in the new job for the first month or two?

skintchick

chrisbur wrote: »

There still seem to be some figures missing to work this out.
Your first job for four months was for gross 10985 and you paid tax of 1825.
Is that correct?
Your next job was for the rest of the year and you say this was for 23000pa. What was the actual amount paid in last tax year and how much tax did you pay on this?
The self employed earnings of 1600 is this your profit figure, if not what is the profit figure? I assume no tax has been paid on this.

Right. In the process of answering this question I spotted that I had made one schoolboy error by using the figures for my last enployment off my P45, issued this year, rather than from my P60 for the tax year 07-08, so I've sorted that out and now find I owe £371.84, which may well be more like it.

The first job I did, may have been for five months in fact, but the figures from my P45 from there are:
tax code 522L, total pay £10,985.40 and tax paid £1,825.81

The second job the figures are:
tax code 522L M1, total pay £14,994.62, tax paid £2,352.40

The freelance self-employed writing job I earned a total of £1,600 over the year, on which I have not as yet paid any tax as I invoice for it and am not PAYE.

So I think probably it is right now? As £371.84 is 23 per cent of £1,600.

I'm so glad I asked on here though as had you not questioned me I might never have realised I was using the wrong paperwork! :eek: I blame the fact I am pregnant - my brain has turned to mush.

skintchick

mrkbrrws wrote: »

Just after you changed jobs in 2007/08, did you notice if you were deducted an unusually low amount of tax in the new job for the first month or two?

no, I received the same in-hand money each month so it must all have been correct.

chrisbur

Can you recheck these figures as they suggest a tax owing of about £100 more than you say when I work them out?

skintchick

They are definitely the right figures now. They are off the paperwork the firms gave me, and the tax figure is from the Inland Revenue website itself.

Chrisbur - how do you work it out then? Can the IR website be wrong?

I have have paid about £100 in Class 4 NICs - could that be the reason for the discrepancy?

chrisbur

Gross and tax figures for the year are
Gross Tax
£10,985.40 £1,825.81
£14,994.62, £2,352.40
£1,600 nil paid
This gives total gross £27,580.02 and total tax paid £4178.21
Freepay allowance for the year is £5229
This leaves taxable pay of £22351.02
£2230 due at 10% is £223
£20121 due at 22% is £4426

£223 + £4426 = £4649 total tax due.
Total tax paid £1825.81 + £2352.40 = £4178.21

Tax due £4649 less tax paid £4178.21 = Tax still due £470.79

Not sure how you have paid any Class 4 NICs. There are none due on £1600 this is well under the self employed earnings that you would pay Class 4 NICs on.