Self assessment- employed only, calculation states owe £1,800!!

craigpugh

Hi all,
I am being asked to so self assessments still, even though I have never been self employed.
My SA's have been very simple for the last couple of years, and should be again this time, I have one employment, earn a simple amount (ie not over the whatever threshhold where it gets more complex, whatever that is/ means), and no other income whatsoever at all. I have worked out my tax on MSE and 2 other sites, all these tally with what our payroll have deducted via PAYE.

However, the calculation on the online system is telling me i have to pay £1840 more by Jan 31st! Any clues?

Thanks,
C

BoGoF

Did you enter the tax deducted in the relevant box?

Post your income and tax details for more info?

craigpugh

I dont have my P60, so got our payroll clerk to get me some details from the March 2011 'year to date' figures.

Can i check- on the 'tax deducted' box on the return, i have entered just the figure deducted by PAYE for income tax- is that correct? I have also of course had deductions for NI- these are the figures i have from payroll:

Gross- 37,217.43
Tax- 6,147.60
NI- 3,465.63
S. loan- 159.00 (payment ended that tax year)

Thanks,
C

craigpugh

my tax code is 645L or 747L or whatever- standard

ceeforcat

Can you view the full calculation and post up employment details. Are you perhaps in a pension scheme and declaring the gross pay instead of the taxable pay?

Mikeyorks

The £1840 is purely down to the Student Loan. Which should be clear from the SA calculation?

SA will calculate 9% on (£37217 less £15k threshold £22217. Which is £1999.53 less £159 paid = £1840.

There's no way of telling SA that it's paid - as far as I'm aware. Which is why the sensible route is to switch to DD direct to SLC for the last 18 months or so.

I'll find an earlier thread I remember where someone experienced this + (hopefully) solved it.

https://forums.moneysavingexpert.com/discussion/3692703

(this isn't the fairly complete one I was looking for - which has gone AWOL. But it gives you some pointers?)

craigpugh

What about selecting that I don't have an income contingent s.l., then putting a note in the 'other information' section to explain the last 159 was paid off this year?

BoGoF

craigpugh wrote: »

What about selecting that I don't have an income contingent s.l., then putting a note in the 'other information' section to explain the last 159 was paid off this year?

Don't do that, follow the guidance in the link posted by mikeyorks

Tarasam

If it is from S/L and you've paid it off in full during 10/11 then you need to submit the tax return as it is then write in to HMRC to request an informal standover, basically this will mean that HMRC will liase (after 31.01.12) with the SLC to clarify the situation and then update the records accordingly.

bdd198

I have the same problem, and my over-payment is also going to be in the region of £1,800.

I have letters from the SLC and an invoice from them confirming that the loan was paid off in May 2010. HMRC also know it's been paid off because they haven't been deducting the loan from my PAYE the last eighteen months.

It seems very surprising that they don't have an option for declaring that your loan has been paid off to avoid situations like this. And considering the number of student loans that are paid off each year it raise a cynical thought that they deliberately don't give you that option so they can hold onto your money for a few months and pocket the interest!

Mikeyorks

bdd198 wrote: »

And considering the number of student loans that are paid off each year it raise a cynical thought that they deliberately don't give you that option so they can hold onto your money for a few months and pocket the interest!

Which is rubbish. I posted a link on your other thread showing how you get out of this without contributing a further penny! And you could have cleared it accurately by picking up the DD option that's on offer for the last 18 months of the loan :

http://www.hmrc.gov.uk/leaflets/csl1.pdf (Final para - Page 3)