Tax year 2012-13

WaxiesDargle

Hi


I have to fill out a Self-Assessment tax form for the financial year 2012-13 in order to claim Income Tax Relief for a Community Shares Scheme (EIS).
I am PAYE on two incomes, one from a final salary pension and the other from my present employment. I have a P60 for the pension but only a March salary payslip for my employment as I can't find the P60 for that.


Anyway the information on these documents are as follows:


Pension (No NI) Final Tax Code K834


Pension paid £25,833.76
Tax deducted £6836.40
percentage of standard allowance used by this pension 37.43%


Employment... Tax Code: BR CUMUL


Gross Pay £29,119.28
Taxable Pay £29,059.28
Tax Paid £5811.80


Could anyone please tell me if the tax taken off figure is correct?.


Thank you

WaxiesDargle

Thank you blondebubbles

zygurat789

However, if you were 65 or under on 5 April 2013 and you had no other income your tax bill would have been £11,865.20. You have paid £12,648.20 so maybe you have other non-taxed income such as BiK or rents, or mybe you've overpaid.

WaxiesDargle

Thank you zygurat

I am under 65 and do not have any other taxed or non-taxed income. Hopefully this will be picked up when I submit the Self-Assessment form


Cheers

purdyoaten

I do not wish to speak for zygurat789 obviously but I believe that he has worked out the tax due on an income of £54893 as stated by the op. We have no idea why a K code was in operation.

You have worked out the tax due on the basis of the codes (and you are absolutely correct), not the personal tax liability of the op e.g. £63233 at 20% rate is not possible.

zygurat789

purdyoaten wrote: »

I do not wish to speak for zygurat789 obviously but I believe that he has worked out the tax due on an income of £54893 as stated by the op. We have no idea why a K code was in operation.

You have worked out the tax due on the basis of the codes (and you are absolutely correct), not the personal tax liability of the op e.g. £63233 at 20% rate is not possible.

Thanks Purdy, I only nipped out to pick up the daughter and grandsons from the airport.

As we have seen only too often on here tax codes may be wrong. I tried to ascertain if there was any other taxable income and was told there wasn't so My calculation stands in those circumstances.
Hmrc mat have used code K834 for a variety of reasons to cover higher rate tax on both incomes and historical reasons or maybe there is a car
with the job.

WaxiesDargle

Thank you all for the replies.

The K code is because I should be taxed at 40% on a certain amount of my income However they add the £8340 and tax it all at 20%
I think it is for ease of doing it.


If this is wrong then I'm stumped!


I do not have any other income apart from the pension and salary

zygurat789

WaxiesDargle wrote: »

Thank you all for the replies.

The K code is because I should be taxed at 40% on a certain amount of my income However they add the £8340 and tax it all at 20%
I think it is for ease of doing it.


If this is wrong then I'm stumped!


I do not have any other income apart from the pension and salary

Basically yes
The K code is a device to try and ensure that you do not underpay tax in a situation where HMRC can not possibly know what are the correct figures.
You should look at your PAYE tax paid as being on account only, it will not be correct. Your tax return is the definitive calculation of your liability.

WaxiesDargle

Just an update to my original post in April

After sending off my self-assessment form in order to get the EIS tax relief of 30% which would have been £600, I have just received a letter from HRMC with the following:

Pay from all employments.......... £29,059
UK Pensions and state pensions...£25,833
Total income................................£54,892
Minus Personal allowance............£8,105
Total income where tax is due......£46,787

How I worked out your Income Tax

Pay, pensions, profit etc......................£34,370 @ 20% = £6,874.00
£12,417 @ 40% = £4,966.80

---

Total income on which tax charged £46,787

Income Tax Charged........................................................ £11,840.80

minus Enterprise Investment Scheme relief.........................£600.00

Income Tax due after allowances and reliefs ......................£ 11,240.80

plus underpaid tax for earlier years in your tax code for 2012-13 £1,197.00

Income Tax due..............................................................£12,437.80

minus Tax deducted
From all employments,UK pensions and state benefits....£12,648.20
Total tax deducted.........................................................£12,648.20

Income Tax overpaid.....................................................£210.40

So instead of the £600 expected it appears I am getting £210.40

Can anyone here work out how it's gone from £600 to £210.40?

I really unsure why there is a £1,197.00 underpayment for 2012-13 as I am on PAYE...I'll have to get out my past paperwork

Thank you

jimmo

The £600 EIS relief is there so the problem is somewhere else.
The £1197.00 is not a 2012/13 underpayment. It is a part or the whole of an underpayment for an earlier year which was intended to be collected during 2012/13. There are 2 things to look for.
1) Have you received forms P800 for 2011/12 (or an earlier year) If so, does it calculate an underpayment?
2) Did your (main employment) coding reduce during 2011/12? If so was it put on a week1/month1 basis? (On Notices of Coding HMRC tend to refer to that as putting your code on a special basis.)
In the same notice did they also say that they estimated that you will have underpaid tax in 2011/12 and was that figure £1197?

jem16

jimmo wrote: »

1) Have you received forms P800 for 2011/12 (or an earlier year) If so, does it calculate an underpayment?

Yes there was and it was discussed on here at the time.

2) Did your (main employment) coding reduce during 2011/12? If so was it put on a week1/month1 basis? (On Notices of Coding HMRC tend to refer to that as putting your code on a special basis.)

The underpayment was all down to receiving a salary plus a pension which crossed over into higher rate tax when added together but not on their own.

In the same notice did they also say that they estimated that you will have underpaid tax in 2011/12 and was that figure £1197?

It was £1197.

All discussed in this prior thread.

https://forums.moneysavingexpert.com/discussion/3449333