Class 4 NIC Student loan? I Paid it off in 1998

Derby_Cyclist

Hello

I was wondering if someone can help please?

I have just completed my tax return for this year and to my shock it says I owe £3,298.23 for class 4 NIC Student Loan due for 2012-2013.

This has confused me somewhat. I'm 40 years old and am an employee- no company car, no pension, no personal healthcare. I just get paid some money and my tax is collected through PAYE. The only thing I claim back is some mileage for my car as I use it for business.

I paid off my student loan 16 years ago.

This doesn't seem right does it?

Thanks in advance

Derby Cyclist

purdyoaten

I would read it again. I believe that it says something like - Total due in respect of tax, class 4 NIC and Student Loan contributions =£3298.33, of which the Student loan and class 4 NIC parts, in your case, are NIL.

Have you entered the tax deducted from your PAYE job in the employment section? I fear not!

Derby_Cyclist

Hi- Thanks for the response.

Yes - just double checked- everything is in the correct boxes. Very confused!

CLAPTON

if all you are claiming is mileage why are you filling in a tax return : a simple letter will do

anyway without knowing any numbers it's a little difficult to guess exactly what has happened

Derby_Cyclist

Thanks Clapton- whats the process for getting off of Self assesment? I think it's a legacy thing for me- I used to work for a plc and have lots of benefits car/petrol card/ healthcare etc etc but now I just get a salary.

I've just spoken to the tax office and apparently its a generic code (???) and they are saying that I'm going to have to pay it as I've underpaid for the year.

Great. :-(

purdyoaten

Derby_Cyclist wrote: »

Thanks Clapton- whats the process for getting off of Self assesment? I think it's a legacy thing for me- I used to work for a plc and have lots of benefits car/petrol card/ healthcare etc etc but now I just get a salary.

I've just spoken to the tax office and apparently its a generic code (???) and they are saying that I'm going to have to pay it as I've underpaid for the year.

Great. :-(

I would not simply be accepting of the fact that you simply pay over £3000 without at least some logical explanation. I have just retired after 35 years working in tax and a 'generic code' is a new one on me!

Can you provide your P60 details including your code number? A £3300 underpayment is reflective of £16500 untaxed income (half if you are higher rate). Something is clearly wrong here!

Derby_Cyclist

Thanks again for your help- really appreciate it. My tax code is 1625L.

I am a high rate payer.

zygurat789

Derby_Cyclist wrote: »

Hello

I was wondering if someone can help please?

I have just completed my tax return for this year and to my shock it says I owe £3,298.23 for class 4 NIC Student Loan due for 2012-2013.

This has confused me somewhat. I'm 40 years old and am an employee- no company car, no pension, no personal healthcare. I just get paid some money and my tax is collected through PAYE. The only thing I claim back is some mileage for my car as I use it for business.

I paid off my student loan 16 years ago.

This doesn't seem right does it?

Thanks in advance

Derby Cyclist

With a code number of 1625L that's an awful lot of mileage.
What does your P2 say that is made up of?

purdyoaten

Normal allowances 8105

Allowances given 16250

Difference is 8145

OP is higher rate? - 40% of £8145 is £3258.

OP did not claim expenses on tax return which have been included in his code number?

Lots of assumptions but not much else to go on!

Derby_Cyclist

The mist seems to be clearing a little on this. I've taken my last 3 years p60's out and every year they have increased my tax code. Looking at last months pay packet it is higher again this year.

Not sure why they have done this- nothing in my employment has changed yet my tax code has risen massively over that period. I can look forwards to another big bill next year then.

Hopefully they will dump my code after this month so at least I can mitigate some of next years fee.

Thanks all for your help. It seems the error is with HRMC.

dori2o

Derby_Cyclist wrote: »

The mist seems to be clearing a little on this. I've taken my last 3 years p60's out and every year they have increased my tax code. Looking at last months pay packet it is higher again this year.

Not sure why they have done this- nothing in my employment has changed yet my tax code has risen massively over that period. I can look forwards to another big bill next year then.

Hopefully they will dump my code after this month so at least I can mitigate some of next years fee.

Thanks all for your help. It seems the error is with HRMC.

The code will have been updated from the information you submitted on each years tax return.

When you completed this years form what figure did you put on the return for travel and subsistence expenses?