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Is the Moneysaving taxchecker working correctly??
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wakeywarrior
Posts: 23 Forumite
in Cutting tax
I am really confused here. I have used the Moneysaving and the listentotaxman tax checker and they are giving me different amounts to the inland revenue. Can anyone assist me in telling me why there is a difference?
For example, in 2008-2009 I earnt 65503. I paid 2075 from my income into my personal pension (before grossing up etc). I paid 15999.20 income tax.
The Inland Revenue say that my tax allowance given my pension contribution is 6035 which seems to be correct.
They then take the 6035 from the 65503 which gives 59468. Then they say I pay basic rate at 20% on 36800 (7360) and 40% on 22668 (9067.20) meaning I should have paid tax of 16427.20 and thus they say I have under paid by 428!
However, the tax checker says that whilst the tax free allowance is the 6035, it goes on to say that the tax due is 15997 which means I would not have underpaid.
Sorry for being an idiot but can someone assist me??? Is it because of the refund on the pension payments made directly into the pension not being taken into account on the tax checker? Should I be paying the taxman 16427.20 rather than the lower amount?
Many thanks.
Wakey
For example, in 2008-2009 I earnt 65503. I paid 2075 from my income into my personal pension (before grossing up etc). I paid 15999.20 income tax.
The Inland Revenue say that my tax allowance given my pension contribution is 6035 which seems to be correct.
They then take the 6035 from the 65503 which gives 59468. Then they say I pay basic rate at 20% on 36800 (7360) and 40% on 22668 (9067.20) meaning I should have paid tax of 16427.20 and thus they say I have under paid by 428!
However, the tax checker says that whilst the tax free allowance is the 6035, it goes on to say that the tax due is 15997 which means I would not have underpaid.
Sorry for being an idiot but can someone assist me??? Is it because of the refund on the pension payments made directly into the pension not being taken into account on the tax checker? Should I be paying the taxman 16427.20 rather than the lower amount?
Many thanks.
Wakey
0
Comments
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The reason is that the Inland Revenue haven't allowed for your pension contributions
- but...
You are supposed to give the taxman the pay figure AFTER pension contributions have been deducted. If you gave him the gross figure he will have got the answer wrong0 -
The reason is that the Inland Revenue haven't allowed for your pension contributions
- but...
You are supposed to give the taxman the pay figure AFTER pension contributions have been deducted. If you gave him the gross figure he will have got the answer wrong
Thanks- I did set out in a letter exactly what I had been paid, what I had then paid net into my pension etc. It was drafted really clearly.
Does this mean then that they have got it wrong and owe no tax?
Many thanks for your assistance.
Regards
Wakey0 -
wakeywarrior wrote: »Thanks- I did set out in a letter exactly what I had been paid, what I had then paid net into my pension etc. It was drafted really clearly.
Does this mean then that they have got it wrong and owe no tax?
Many thanks for your assistance.
Regards
Wakey
It certainly sounds like it0
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