Check of self assesment tax return letter.

Printer

Hi

recieved a letter today from the tax man.

It says "Check of Self Assesment tax return- year ending 5 april 2011"

It says they have checked my self assesment against what my employer has paid as tax and states i have paid too little.

I pay my tax by PAYE from employer but also have a property which i rent out. I do it all above board and complete my tax returns correctly as far as i know.

I dont actually work for this company anymore and do not they have a habit of getting stuff like this wrong, but i have no evidence at this point so am not pointing the finger, very possibly my fault but i cant see how.

Anyway, not quite sure what to do next other than try to contact my old employer.

I dont really want to pay the tax if its not really owed and i centainly dont want to pay a penalty as i have been very honest with them and filled everything in to the best fo my knowledge.

Any advice?

middlepuss

Did the tax code used by your employer include as assumed amount of rental income? If so, your PAYE will have paid roughly the tax you owe on the rentals.

If your tax code did not include any estimated amount of rental income, then you owe HMRC tax on the profit you have made from renting.

What did your notice of coding say? Or, what was your tax code as shown on your last payslip or P45?

I think your post probably does not give enough info for anyone to give you useful advice.