Self assessment - I owe nearly twice what I earn't.

jay_2012

I'm just doing my online assessment, and it seems I owe nearly double what I earn't - does this sound right to you?

I have had two full-time jobs during the tax year, and entered in the information from my P45 and P60 as required. I have only done a few self-employed freelance jobs, and the total came in at under £700. However my calculation says I own them £1100.

Is this normal? If this is correct, there is no way I afford to pay it - what would my options be?

Many thanks.

BoGoF

Post up your P45 and P60 details.

What date did you leave job 1, what date did you start job 2?

jay_2012

Hi BoGof.

I left Job 1 in January 2011, and started my current full-time job immediately. I've rounded the following figures:


The P45 from Job 1

---

Total pay to date: £18,300
Total tax: £2480


The P60 from current job

---

Total for year: £2630
Tax deducted: £0


Self-employment earnings

---

Total: £660



Thanks very much for your help.

BoGoF

The problem is you didn't pay tax on the 2nd job - did you hand in your P45 to your 2nd employer?

antrobus

I'd go total earnings (18300+2630+660) are £21,590, less personal allowance of £6,475 gives taxable income of £15,115.

Tax due on £15,115 at 20% is £3,023, less the £2,480 suffered on job 1, leaves £543 to pay.

I'm not sure how one could get to £1100?

BoGoF

antrobus wrote: »

I'd go total earnings (18300+2630+660) are £21,590, less personal allowance of £6,475 gives taxable income of £15,115.

Tax due on £15,115 at 20% is £3,023, less the £2,480 suffered on job 1, leaves £543 to pay.

I'm not sure how one could get to £1100?

Good point, I didn't check the arithmetic - just saw nil tax paid on the 2nd job.

jay_2012

The problem is you didn't pay tax on the 2nd job - did you hand in your P45 to your 2nd employer?

Yes, I did.

I'm not sure how one could get to £1100?

I'm not sure either - this is the figure calculated during the online self-assessment process.


Again, thanks for your help.

BoGoF

If you can show us exactly what the calculation shows - income from employment, income from self employment and tax deducted at source.

mrkbrrws

Do you have to make student loan repayments?

jay_2012

I didn't see the link to the full breakdown, here it is:


Pay from employments £20,957.00
Pay from all employments £20,957.00
Profit from self-employment £660.00
Total income received £21,617.00
minus Personal allowance £6,475.00

Total income on which tax is due £15,142.00

How we have worked out your income tax

Pay, pensions, profit etc £15,142.00 @ 20% £3,028.40
Total income on which tax has been charged £15,142.00
Income Tax charged £3,028.40
plus Student Loan repayments £535.00
Income Tax due £3,563.40
minus Tax deducted
From all employments £2,479.00
Total tax deducted £2,479.00
Total Income Tax due £1,084.40



If I don't include my current job, then the total owed goes down to £323.

mrkbrrws

I can't see any student loan repayments already taken by your employer on that calculation.

Assuming there would have been some, you need to enter the total paid into a box on your Tax Return.