HMRC | First time Form Filler | Presume they are always right?

bobsy31

Hi there

Hoping people on this forum can offer their views.

In December I got my first ever letter from HMRC asking me to fill out a Tax Return for 2010-2011, which I have done today.

I am employed by a company, paid basic salary and then bonuses on top. I don;t have another job, and am not subscribed to the company pension, healthplan.

I think I have filled out everything as I should, anyway it turns out that they want me to pay them just under 3k that I 'owe' - ouch!
I have some queries which I hope people can share their views on:

- how can my employer have not taken the right tax at source, meaning I have this amount to pay out of the blue?
- As it is my first form I am wondering if I have filled it right? I went off my p60 which shows what I earnt and the tax I paid. Most other bits of the form I left blank
- There was no place to add my NI contributions on the form - is that right?
- I am very new to this, in someone;s experience what bits of the form if filled out as they should would reduce the amount that I owe. I'm not for one secodn suggesting putting somethign in there that is not corect, it;s just I may have overlooked it.

- where/who could I get advice on whether I have filled the form in correctly? Approximately what is the cost of this?

Many Thanks

BoGoF

If your only income was PAYE then let us know (from your P60), taxable pay, tax paid and tax code operated.

dori2o

Without looking at the figures you have put on the form we cannot make an assumption as to why you have - according to the assessment- underpaid.

PLease provide this information.

bobsy31

P60 shows following:

Total Pay for year: 123437
Tax Deducted: 39399

Final Tax code: 623L

Not sure if this helps but I have checked one of my pay slips for this tax year and it is 723L

BoGoF

bobsy31 wrote: »

P60 shows following:

Total Pay for year: 123437
Tax Deducted: 39399

Final Tax code: 623L

Not sure if this helps but I have checked one of my pay slips for this tax year and it is 723L

If you earn over £100,000 then you start to lose your entitlement to personal allowances, on your sort of income you will not be entitled to any tax free allowance for 2010-11 so that is why you are underpaid. Does your calculation shown any personal allowance.

Similarly for this year, if you are on the same sort of income you will be underpaid.

BoGoF

[Deleted User] wrote:

Hi,



Were you employed 2010/11, if so you should've been taxed PAYE, and any underpayment would've shown before now and collected through your salary now.

Not if you meet the criteria for completing Self Assessment - of which earning over £100k is one.

bobsy31

Thanks for the replies.

From what people are saying the amount owed is correct - not good news!

Anyone have advice on any of my other questions/points please?

Thank you

BoGoF

No you don't enter NI contributions on your Tax Return.

Unless you have incurred any expenses then there is probably nothing to reduce it. 'Typical' expenses - mileage relief for using your own car for business purposes, professional fees/subscriptions. Do you pay into your own private pension?

bobsy31

I do not pay into a private pension, and claim expenses evry month from work for mileage, other costs etc


So such 'surprises' and the underpayment issue doesn't happen again, Do I need to tell my employer about this so i'm put on the right tax code or whatever else they need to do?

Thanks

BoGoF

Your current tax code should be 0T, you should tell advise HMRC.

bobsy31

thanks bogof, just afew more things if you would pls help.


My basic salary is less than 40% of what I earnt that tax year, and the bonuses I get on top of this are inconsistent and never guaranteed. So one year it could be nothing - should I still tell hmrc that my tax code is OT?

my tax code changed from 623L in 2010-2001 to 723L this tax year - what does that mean?

As a HRT, would this underpayment be reduced if I joined the company pension scheme or paid into my own pension? The company one is a salary sacrifice one where they contribute 50% of the NI they save. At the moment i have no Pension.

Thanks