tax return shows i owe more tax than i earned?

Duffelcoat1

Okay this is the box that is causing it:

If you have received notification from the Student Loans Company that repayment of an Income Contingent Student Loan began before 6 April 2009, put 'X' in the box

Basically if you received notification before the end of the tax year 05/04/09vyou should have been paying student loan deductions on that tax year.

By ticking this box you are saying I did receive it and therefore should have been paying student loan deductions.

The P60 says no student loan deductions have been made and thus the charge. (@9%) + 12.40

Duffelcoat1

Therefore it wants 769 + 12.40

If you enter an amount of student loan repayments it reduced the 769 amount, leaving you with an odd amount depending on what you put in.

So the question is, did you need to make loan repayments before 06/04/09?

Duffelcoat1

Tax Calculation for 2008-09

Income received (before tax taken off)
Pay from all employments £23,492.00
Profit from self-employment £60.00
Total income received £23,552.00
minus Personal allowance £(6,035.00)
Total income on which tax is due £17,517.00
How I have worked out your Income Tax
Pay, pensions, profit etc. £17,517.00 @ 20% = £3,503.40
Total income on which tax has been charged £17,517.00
Income Tax charged £3,503.40
plus Student Loan repayments £769.00
Income Tax due £4,272.40
minus Tax deducted
From all employments £3,491.00
Total tax deducted £3,491.00

Total Income Tax due £781.40

dearbarbie

Okay - it's correct. Whoops! Hello Taxman!

Tax calculation
This section provides you with a breakdown of your full calculation.

Pay from employments £23,492.00
Pay from all employments £23,492.00
Profit from self-employment £60.00
Total income received £23,552.00
minus Personal allowance £6,035.00

Total income on which tax is due £17,517.00

How we have worked out your income tax

Amount Percentage Total
Pay, pensions, profit etc £17,517.00 @ 20% £3,503.40
Total income on which tax has been charged £17,517.00
Income Tax charged £3,503.40
plus Student Loan repayments £769.00
Income Tax due £4,272.40
minus Tax deducted
From all employments £3,491.00
Total tax deducted £3,491.00
Total Income Tax due £781.40
Estimated payment due by 31 January 2010
2008-09 balancing payment £781.40
1st payment on account for 2009-10 due 31 January 2010
(Note: 2nd payment of £0.00 due by 31 July 2010)
£0.00
Total due by 31 January 2010 £781.40

dearbarbie

Duffelcoat1 wrote: »

Therefore it wants 769 + 12.40

If you enter an amount of student loan repayments it reduced the 769 amount, leaving you with an odd amount depending on what you put in.

So the question is, did you need to make loan repayments before 06/04/09?

i did before the 08-09 tax year, yes. weird how they stopped for a yr

Duffelcoat1

You have the same figures as me, so looks like it is right, unless you didnt need to make any loan repayments before 060409 in which case you should be able to untick the box if the student loan repayments box is zero....

dearbarbie

Eeek. Well I can only hope that they let me pay it in installments, what a screwup!!!!! Thanks so much for your help.

Duffelcoat1

But you will pay off your loan earlier.

If you are having trouble paying the amount, phone the HMRC as soon as your self assessment is registered on your account with it showing the amount to pay by 310110.

You may be able to negotiate repayment.

Mikeyorks

I'm bemused you were unhappy at £74 ....... but seem reasonably content at £781.40?

If the SL was being paid and stopped for a year? Then either you moved jobs and the P45 was incorrectly completed. HMRC issued a Stop notice (unlikely). Or the fault lies with your employer.

If nothing is being deducted in the current year (09-10) ...... it's a problem not yet resolved?

dearbarbie

Just after that tax year, I moved employer, and deductions have started again, been going on since mid-April I think!

Not happy at all but argh, what can I do! Fault of SLC/employer but not sure if I can get out of it...