tax return shows i owe more tax than i earned?

dearbarbie

help!

in the tax yr 08-09 i received my fist invoice (for part-time freelancing) just before the yr was up, to the sum of £60. just done tax return and it wants £74!!!

i am a sole trader and i also have a fulll-time job, of which i copied the information from my p60.

no idea what to do and ive been on hold to the tax office for aaaggges.

anyone any ideas what i could have done wrong?

by the way, i have no expenses or anything. just a plain invoice for £60 income!

sandiep

Tax and NIC for this year, plus a payment on account for next year?

First thing to check is your allowances, it looks like there maybe a difference between your tax code and the personal allowance. What is the tax code on your P60?

Have you used an tax software package, the HM website or done it manually?

dearbarbie

I've done it totally manually:

All income = £60

Expenses = £0

Profit = £60

The tax code on my P60 for that year is 603L (2008-09)

Is the lower earnings limit my personal allowance? As my LEL for that year was 4680...

Defo getting an accountant for this yr!

Mikeyorks

Student Loan by any chance?

That - in particular - can skew the figures when you take your P60 figures (comprised of monthly deductions) and put them all together into the annual SA calculation.

dearbarbie

Hmm, actually in that tax yr my student loan wasn/t being deducted, but i ticked that it was on the tax return. could that be it?
should i untick that box seen as it wasnt being taken off during that period?

Mikeyorks

dearbarbie wrote: »

could that be it?

Yes ..... if your total chargeable income was above £15000. It will apply 9% to any excess. Does that fit (the difference is £62 .... £74 less the £12 tax due on £60)

(The LEL - incidentally - is the lower NI threshold)

dearbarbie

hmm i cant take it off. this is what the calc says:

Total tax, Class 4 NIC and Student loan due for 2008-09 £74.40
Plus
First payment on account for 2009-10 £0.00
Payment due by 31 January 2010
This amount does not take into account any 2008-09 payments on account you may have already made.

£74.40
Second payment on account for 2009-10 will be due by 31 July 2010 £0.00

Not sure if I should just accept it!?

dearbarbie

thanks for your help...

my income that yr was £23492

so minus 15000 leaves £8492...student loan on that would be about £750....

Oh I am so confused!!!

Mikeyorks

dearbarbie wrote: »

Not sure if I should just accept it!?

Not when I'm intrigued ... you don't!!

Reply to Post #6? (and confirm no Student loan total on your P60 ..... if your chargeable total is far off £15700?)

Mikeyorks

dearbarbie wrote: »

so minus 15000 leaves £8492...student loan on that would be about £750....

Sure no student Loan on the p60?

dearbarbie

see above

no student loan appears on p60, big phat zero

my chargeable SL amount is about £8500 as above in post #8