Self Assessment - Reed wrong tax code!

gab4wigan

I'm completing a self assessment form for £90 earnings alongside my other PAYE work but am being told I could owe £1k in tax by being on the wrong tax code 804L. I can't seem to find anyone who can help. My earnings had a type of tax relief in the form of reed travel benefit but because this reduces the amount of tax you pay I now am looking to be paying what I would have paid anyway if I had not had the 'benefit'. Are there any tax advisors or people with similar experiences who can help?

nomunnofun

gab4wigan wrote: »

I'm completing a self assessment form for £90 earnings alongside my other PAYE work but am being told I could owe £1k in tax by being on the wrong tax code 804L. I can't seem to find anyone who can help. My earnings had a type of tax relief in the form of reed travel benefit but because this reduces the amount of tax you pay I now am looking to be paying what I would have paid anyway if I had not had the 'benefit'. Are there any tax advisors or people with similar experiences who can help?

You are being told??

If you were on the wrong tax code of 804L in your second job, you would be underpaid £1600 IF YOU EARNED £8040. As you earned £90, the tax on this, assuming basic rate tax, should be £18.

gab4wigan

Thanks for the post. I've basically inputted my PAYE and self employed earnings in the self assessment (not having put any expenses in) and based on earnings and tax paid it says I owe over £1k on the tax calculation. When I've looked into why this could be, my first income is PAYE through Reed on the tax code of 804L and I paid lower tax in this role due to the Reed travel benefit scheme. It seems the tax calculator on HMRC doesn't take this into account and sees this as incorrect. Also I searched on google and apparently my tax code should have been 810L. I supplied my P45 to my new employer and I understand they should get the tax code from the HMRC. Reed are clueless when I call them and I'm wondering what is best to do next.

jem16

gab4wigan wrote: »

Also I searched on google and apparently my tax code should have been 810L.

810L is the normal tax code but there could be many reasons for having a slightly lower tax code. This isn't the reason for the underpayment though as having a lower tax code would see you paying more tax than necessary not less.

Provide the figures you are putting into the SA and we could tell you what's happening. You haven't given anough info to tell you otherwise.

Savvy_Sue

I may be misunderstanding here, but is that £1000 it says you owe the TOTAL that you owe for the year, including what you've already paid through PAYE?

jimmo

Code 810L is the standard code for 2012/13 but the Self Assessment Return you are completing now has to be for 2011/12 when the standard code was 747L.

That still doesn’t explain what has gone wrong.

Can you give some description of the “Reed travel benefit scheme” ?