Help me tot this up...

halesowenmum

Ok so in the 12-13 tax yr I did one bit of self employed work which created £3750 income. Tax bill was around £500 for that amount/year and my total PAYE earnings in that year were around £15k.

The second payment received from that bit of self employed work fell into tax year 13-14 - the exact same amount - £3750, no other self employment. My PAYE income has gone up though at £20,969.

To cut a long story short, cannot file online - its pants and doesn't calculate properly. It seems to have thrown it that someone can earn £3750 and the online process wants to assume that those earnings carried on for the rest of the year (I only wish they had!!!). So I was told by HMRC staff to 'tick the box to say you earned over £79k' - I said 'but i didn't' - they said 'tick it anyway its the only way it will let you submit that £3750'. Ok says I reluctantly but then when I then got to the end of it it gave me the initial calculation at which point I nearly fell off my sofa. It's telling me in total that I owe £1,833!!!!! Surely that can't be right?????!!!! :eek: I have not submitted it and have done a paper version instead which is ready to post off.

Having done some rough calculations I guessed it wouldn't be more than about £800 in tax owed for that self employment (which I have already set to one side as I'd prefer to pay it in one lump sum and not have it clawed back through my PAYE and then get that all confused).

By having to abandon filing online I've lost is the ability to see how much I might actually need to pay in tax for that self employment though which is a bit of a shame. I think having been told to say that I'd earned more than £79k has caused it to assume that I need to play Class 4 NICs and that's likely where this frightening amount is coming from - so much for her telling me 'It won't make any difference at all').

What I'm asking really is, based on my PAYE income AND the £3750 earned from self employment, how much self employed tax do you think I should be paying for that £3750 in the 13-14 tax yr???

Any firm answers will be so helpful as I am stressing not knowing what the amount is going to be - the £1833 has totally sent me into panic mode (I'm about to head out to the local town centre with my son's guitar and an old cap) - I need to know where I am and what money I do/don't have to play with and I've now got no idea having had to abandon filing online. Thank you

CLAPTON

I don't really fully understand what you are saying but if your PAYE tax is correct then the tax due on SE of 3750 should be
tax at 20% i.e £750 and no class 4 NI as your earnings are too small


presumably you are entering your PAYE earning and details on your SE forms

Dr_Teeth

£20969 + £3750 = £24719
Less personal allowance £9440
Taxable income = £15279
Charged at 20% = £3055.80

Assuming no special circumstances, that should be your total tax to pay for the year. Clapton is correct that you will have no Class 4 NI to pay.
How much does your p60 show you pain in PAYE tax?
Did you have any benefits in your tax code? Company car etc?
Do you have a student loan outstanding?

zygurat789

halesowenmum wrote: »

To cut a long story short, cannot file online - its pants and doesn't calculate properly. It seems to have thrown it that someone can earn £3750 and the online process wants to assume that those earnings carried on for the rest of the year (I only wish they had!!!). So I was told by HMRC staff to 'tick the box to say you earned over £79k' - I said 'but i didn't' - they said 'tick it anyway its the only way it will let you submit that £3750'. Ok says I reluctantly but then when I then got to the end of it it gave me the initial calculation at which point I nearly fell off my sofa. It's telling me in total that I owe £1,833!!!!! Surely that can't be right?????!!!! :eek: I have not submitted it and have done a paper version instead which is ready to post off.

Having done some rough calculations I guessed it wouldn't be more than about £800 in tax owed for that self employment (which I have already set to one side as I'd prefer to pay it in one lump sum and not have it clawed back through my PAYE and then get that all confused).

By having to abandon filing online I've lost is the ability to see how much I might actually need to pay in tax for that self employment though which is a bit of a shame. I think having been told to say that I'd earned more than £79k has caused it to assume that I need to play Class 4 NICs and that's likely where this frightening amount is coming from - so much for her telling me 'It won't make any difference at all').

Consider this.
The on line system is used by millions of people and it works alright for them, perhaps it's not the system which is at fault perhaps you have, inadvertently, put a figure where it ought not to have been.
What was your PAYE, expenses and net profit, was there anything else?
What did the detailed calculation say?

halesowenmum

Zygurat789, I worked through these technical problems with tax credits technical people - they saw EVERY entry I made because i sent them all the screenshots _- nothing was wrong with anything I had put in. Firstly if i didnt tick I'd earned +£79k it simply wouldnt let me enter the £3750 at all, if i did tick it, it thinks i need to pay Class 4s. Even after their instructions which i followed to the letter they couldn't figure it out and refused to help further - it's by the by anyway, as I just need to figure out what my likely SE tax bill will be, but thank you for your reply. Believe me, my first thought was that it must be me!! Sometimes its just a glitch though, not the fault of the poor soul trying to file their return!

Clapton you've calculated it to about the same level as I did - shame I was told to tick that I'd earned +£79k because that was poor advice as my belief is that on that basis, the online system was assuming I'd need to pay class 4s. Which I already knew wouldn't be applicable. When I spoke to them after about four or five emails going back and forth showing them all the selections I'd made, boxes I had/hadn't ticked they were, frankly, baffled - I can assure you zygurat789, its a problem their own technical support people couldn't figure out.

Hey Dr teeth thanks for that - I was just asking about my tax on my self employed work. I concur with the specific calculation Clapton arrived at.

Thanks so much!!!

zygurat789

halesowenmum wrote: »

Zygurat789, I worked through these technical problems with tax credits technical people - they saw EVERY entry I made because i sent them all the screenshots _- nothing was wrong with anything I had put in. Firstly if i didnt tick I'd earned +£79k it simply wouldnt let me enter the £3750 at all, if i did tick it, it thinks i need to pay Class 4s. Even after their instructions which i followed to the letter they couldn't figure it out and refused to help further - it's by the by anyway, as I just need to figure out what my likely SE tax bill will be, but thank you for your reply. Believe me, my first thought was that it must be me!! Sometimes its just a glitch though, not the fault of the poor soul trying to file their return!

Clapton you've calculated it to about the same level as I did - shame I was told to tick that I'd earned +£79k because that was poor advice as my belief is that on that basis, the online system was assuming I'd need to pay class 4s. Which I already knew wouldn't be applicable. When I spoke to them after about four or five emails going back and forth showing them all the selections I'd made, boxes I had/hadn't ticked they were, frankly, baffled - I can assure you zygurat789, its a problem their own technical support people couldn't figure out.

Hey Dr teeth thanks for that - I was just asking about my tax on my self employed work. I concur with the specific calculation Clapton arrived at.

Thanks so much!!!

The tax creit technical people are not the ones to ask.
The only reason for the £79K question is so that it can ask you for more details. It would not affect Class 4 which is based on profits not turnover.
Like I said it works OK for millions and you do not fully understand what it is trying to do and why and you do not seem interested in solving the problem, good luck next year.
Try deleting all your entries, doing a calculate to make sure and then starting again doing one bit at a time and then calculating. If you have the same problem you will then know what is causing it.

Dr_Teeth

halesowenmum wrote: »

Hey Dr teeth thanks for that - I was just asking about my tax on my self employed work. I concur with the specific calculation Clapton arrived at.

I appreciate that, but your tax will be calculated based on your total income for the year. If you think you should pay £750 and they're asking for £1833, it's best to check you've not underpaid tax elsewhere.

zygurat789

halesowenmum wrote: »

Hey Dr teeth thanks for that - I was just asking about my tax on my self employed work. I concur with the specific calculation Clapton arrived at.

Thanks so much!!!

It looks like you are picking the smallest liability. This may well be correct but the calculation is based on not very clear and certainly incomplete information and is therefore heavily qualified.

keith1950

To cut a long story short, cannot file online - its pants and doesn't calculate properly. It seems to have thrown it that someone can earn £3750 and the online process wants to assume that those earnings carried on for the rest of the year

Hi, I don't understand these comments....you are filing a return for a previous year......so you enter your total self employment earnings for that year....what do you mean by " it seems to assume those earnings carried on for the rest of the year?"....

I fill in an online self assessment every year and have several income sources including self employment.....as stated by others....you must be entering this incorrectly or are not clicking relevant tick boxes or are clicking tick boxes that are not applicable to you . Why would it, as you say, assume its carrying on for the rest of the year when you are entering year end figures ?

I worked through these technical problems with tax credits technical people - they saw EVERY entry I made

Tax credit are the wrong dept. to be dealing with as tax credits are a non-taxable income so have no bearing on your tax payable.