Tax Free allowance on earnings.

flan123_2

Hi. Im self employed DJ and earned 6200 09-10. I am also employed and earned 14526.10 paying 2,905.20 tax. I paid 297 tax on my self employed work too.

Does this seem high? What is my tax free allowance per year?

Thanks!

Mikeyorks

Total income .................... £20726
Personal allowance ........... £6475

Taxable .......................... £14251

Tax due (£14251 @ 20%) ...£2850

Tax paid (?) ..................... £3202

Overpaid ........................ £352

As above - your personal allowance is £6475. But I'm curious as to where you get the tax paid figures from? The Code for your job looks to be BR ......... which is wrong. But the tax on your DJ job should be around £1240! So something is crossed somewhere

Did you not file an SA Return by 31st Jan 2011? As that should have resolved any discrepancies and (on your figures) would have created a repayment.

suso

There would have been some class 4 contributions as well, if they were truly self employed, but then why was tax deducted ?

threshold 5715 / self employed income 6200 - 5715 = 485 @ 8% = 38.8

flan123_2

Hi.

I did return a SA form (but only last week, late - house move + lost details = late form) so I'm waiting for that to be processed and what not. And yes, I do pay Nat Insurance contributions.

Is it worth speaking to my tax office? As my P60 indicates 'BR' as my tax code... but on my payslips, 158T

sunshinetours

flan123 wrote: »

Hi.

I did return a SA form (but only last week, late - house move + lost details = late form) so I'm waiting for that to be processed and what not. And yes, I do pay Nat Insurance contributions.

Is it worth speaking to my tax office? As my P60 indicates 'BR' as my tax code... but on my payslips, 158T

Class 4 national insurance is paid with your self assessment tax in Jan and July each year. The National Insurance you are paying is Class 2 and not related to profits from self employment

Wait for your tax return to be processed and then contact them. it sound as though you may be paying some of your self employed tax via your tax coding although we don't know what the situation is in previous years of course

Have you registered online for self assessment, its much easier and no "lost" forms

Also if tax on self employed income is low do consider paying it January/July rather than choosing to have it paid via your notice of coding. Put some away each time you do a job (ubnless its a CIS job of course in which case tax is already deducted by the sounds)

Register here

flan123_2

sunshinetours wrote: »

Have you registered online for self assessment, its much easier and no "lost" forms

Also if tax on self employed income is low do consider paying it January/July rather than choosing to have it paid via your notice of coding. Put some away each time you do a job (ubnless its a CIS job of course in which case tax is already deducted by the sounds)

Yeah, I do it online, I couldn't find my Login details and of course that takes an age to be reset and resent.

And I dont know what you mean by the last bit... :rotfl:

Mikeyorks

flan123 wrote: »

And I dont know what you mean by the last bit...

As implied in my earlier post ... where I suggested there was some sort of crossover between your job / self employment. The tax on your job clearly shows (20% deduction no personal allowance) you're on Code BR. That is normally used for a 2nd job.

You need to wait until the SA Return is processed. But as it hasn't been, I'm still curious as to where the tax deducted on the self employment comes from? How do you know that? If you did file online - then it's the wrong figure as you've essentially paid all the tax due on your DJ income - and more - via PAYE.

The Code 158T (£4890 deduction from the standard personal allowance of £6475) almost implies the DJ work is being taken out of your PAYE coding? Have you asked - in the past - for that to be done? If not do you have any 'benefit in kind' - such as a company car from your employment?

flan123_2

No company car, not.

How come my payslip shows 158t but P60 shows 'end tax code - BR'?

I'm really confused now. I've never been great at understanding this and thank you for your help so far!

What should I do?

Mikeyorks

flan123 wrote: »

How come my payslip shows 158t but P60 shows 'end tax code - BR'?

I assumed, from that, the P60 was for 09/10. But the payslip(s) for 10/11? In which case you should have a P2 (Coding Notice) clarifying what the £4890 deduction is in respect of? As - no company car - it can realistically only be for the supplementary earnings for the DJ work. But - in turn - that makes it a bit bemusing on two counts.

1. Normally HMRC will only code out supplementary earnings to £2500.
2. And - they would then tend to check those via P810 procedure rather than also have you in SA. As it's a bit belt and braces otherwise.

If you submitted the Return online (it's a bit unclear). Login to your account and see what it shows. As your figures from the original post imply an overpayment around £350.

Come back once you've checked it. But do clarify if you have a P2 and if the 158T (the 'T' implies there's something in your Code which needs reviewing) is for 10-11?

sunshinetours

flan123 wrote: »

And I dont know what you mean by the last bit... :rotfl:

Sorry my mistake just seen you are a DJ - the CIS I was referring to was if you were a construction worker as I assumed you may be getting some income deducted via that scheme. I didn't mean cash jobs which I think is what you thought

flan123_2

Mikeyorks wrote: »

I assumed, from that, the P60 was for 09/10. But the payslip(s) for 10/11? In which case you should have a P2 (Coding Notice) clarifying what the £4890 deduction is in respect of? As - no company car - it can realistically only be for the supplementary earnings for the DJ work. But - in turn - that makes it a bit bemusing on two counts.

1. Normally HMRC will only code out supplementary earnings to £2500.
2. And - they would then tend to check those via P810 procedure rather than also have you in SA. As it's a bit belt and braces otherwise.

If you submitted the Return online (it's a bit unclear). Login to your account and see what it shows. As your figures from the original post imply an overpayment around £350.

Come back once you've checked it. But do clarify if you have a P2 and if the 158T (the 'T' implies there's something in your Code which needs reviewing) is for 10-11?

That tax code is present on my current payslips, yes. I don't think I have a P2?