Underpaid tax !! help !

rakeshd

I got a letter from HMRC saying that i have underpaid tax.
I have 2 part time jobs and and the total PAYE income is £16992 and tax paid £796.60.
They have then charged me 20% BR on £10517 ?!?! after my personal allowance, and total amount they want back is £2525.80 !

Surely it should have been BR on only one of the jobs ?

tellmeitsfriday

It's usually income minus allowance * 0.2

SO £16992 - £6475 = £10517 *0.2 = £2103.40 liability - £796.60 paid = £1306.80 due.

You normally pay 20% on everything over your allowance (£6475) up to £37400 where it changes to 40%.

Is the £17k the total income for both jobs?

rakeshd

hi thanks for reply

its between 16-17k depending on a few hrs of overtime.

I forgot to add its got an adjustment for the previous yr as well of £1219 making it £2525.

This seems like they have taken the combined total of both my 2 jobs £16992 (PAYE Income) and taken away my personal allowance and attached a BR code on the remaining amount. But i if earn £7000 on one job and £9000 on the other, surely my what i owe them is 20 % on £7000 ??

Chinkle

Your personal allowance - assuming you receive no other taxable benefits is £6475 per year - as both of your jobs pay over that amount you should expect to pay tax on both jobs.

Just take £6,475 off your total take home pay and then 20% tax is payable on the rest.

So sorry to say, you have underpaid.

rakeshd

I have underpaid i agree but i am aloud allowances on 1 job.

So if i earn 8k on 1 job then that should be 20%
and 9k on the other which is my allowances, which should not be 20 % as i have paid the correct tax for that job.

And on job one i had already paid some tax on it hence it should be the remaining amount i.e probably 10 %

Chinkle wrote: »

Your personal allowance - assuming you receive no other taxable benefits is £6475 per year - as both of your jobs pay over that amount you should expect to pay tax on both jobs.

Just take £6,475 off your total take home pay and then 20% tax is payable on the rest.

So sorry to say, you have underpaid.