SA and PAYE Coding

teajug

I am filling a SA and note from PAYE Coding that it says on it on the back of tax coding it says that the 'We have set aside £500 of your tax free allowance for that amount of tax free amount to cover tax due on our estimate of your other income. Please tell us if other income. Please tell us if our figure is wrong or if you prefer to to setle the tax on this income by direct payent, after the end of year. Do I include this amunt in my tax return or not.

Do not know what it means.

Pennywise

The £500 is HMRC's estimate of your other income.

On your SA return you must enter the correct amount.

teajug

Thanks Pennywise, is there section on SA he can put this amount of £500 on the form as amount retenined from his personal allowance or will that be done automatically by the tax office.

Mikeyorks

It isn't £500. The £500 restriction on the P2 (Coding Notice) is there to recover an estimated £100 of untaxed 'other income' (£500 @ 20% = £100).

So - on the SA Return you enter the real figure for that £100 estimate at the appropriate place eg Interest or whatever?