Such a mess with taxes!

amalis

Hi all,

please I need an advice or I'll go mad about all this. I am full time employed and registered self employed. In my employment I took a health insurance last year which is a taxable benefit (calccelled after 1 year). The HMRC , like always, did not notice that I had this benefit until last year, so they adjusted my tax code and let me pay for it.
Now, as a self employed I should be submitting self assesment every year. I had no income at all and when i completed my self assesment I expected not to owe them anything. But I got a calculation 240 gbp in debt due to this underpaid tax on benefit (health insurance). They want me to pay it before the end of Jan. But to my mind, I am already paying it via my adjusted tax code, isnt it right?? what do I do now? do they want me to pay twice for the insurance?

Elaine_Wilson

If you are sure it has already been coded out then you should have been able to enter that fact on the return.

In any event, if the return is filed before the end of December they should adjust the underpayment in the code number for next year.

Check to make sure you are not telling them you do not want it coded out. I don't know how the online tax return works as I use third party software but mine has a tick box for this.

Tarasam

it should be included here:

http://www.hmrc.gov.uk/demo/individual/self-assessment/case-studies/employee/page113.html

(please note the demo if for the 07-08 year and you are completing 08/09) but still appropriate just change the year.

Have you submitted this assessment online becasue if so you can go in and amend, if not then so long as your SA record is linked to the PAYE system (which it should be) it should be picked up automatically.

Hope that helps, its easily corrected. If you're still unsure and have already submitted then call them and get them to check it, HMRC s still open this week (except for Monday)

Rolo_Tomasi

What is included in your tax code? If it just says health insurance then this is collecting the amount due for the current year, not anything that was owed for 2008-09 therefore there is still a debt for 2008-09. If this is the case and you do not want to pay the amount by the end of January you need to amend your SA Return before 31/12/09 and ask for any underpayments to be collected through your 2010-11 tax code.

If your tax code says 'underpayment from previous years' then you have probably completed the Tax Return incorrectly as the amount of the underpayment needs to be included.