Self Assessment - No Personal Allowance??

MockTurtle

Hi there, please help!

I'm doing my Self Assessment Tax return online for only the second time ever and it doesn't seem to be giving me any allowance in the calculation.

I have a PAYE job and I've entered the details from my P60. I also do some Self Employed work, which is why I do a SA. I should only have a little tax to pay, because I earned less than £800 and my expenses came to almost that this year, but when I get to "View your calculation" it tells me I owe thousands!!

I dug out last years to compare and try and see where I['ve gone wrong and in the 2013-14 calculations it says:

pay from employment xxxxxx
profit from self employment xxxxxxx
minus Personal Allowance xxxxxxx

But in this years calculation I'm looking at now, it doesn't mention my personal allowance at all! My tax code for the year was 377T so I should be allowed £,3770 shouldn't I???

Where am I going wrong????

Castle

If you are doing your self assessment return then it will be for the 2013/14 tax year not 2014/15.
Have you put in the tax paid figure from your P60?

Pennywise

Your tax code is irrelevant when completing a SA return. It is less than normal, so you must have had taxable benefits in kind, higher rate adjustments, child benefit or some prior year tax underpayment coded out. It's those components you need to make sure are entered correctly in the online SA return - they won't be populated automatically from your PAYE tax code.

The main reason why there won't be a personal allowance is if your income has breached the threshold at which the personal allowance is withdrawn. It's withdrawn at income between £100-£120k so if you're total income is that high, that's why the personal allowance isn't available to you.

If none of this applies, then there must be something else, so let us know.

MockTurtle

Pennywise wrote: »

Your tax code is irrelevant when completing a SA return. It is less than normal, so you must have had taxable benefits in kind, higher rate adjustments, child benefit or some prior year tax underpayment coded out. It's those components you need to make sure are entered correctly in the online SA return - they won't be populated automatically from your PAYE tax code.

Thanks, but I understand why my taxcode is what it is - I have the coding notice and it breaks it down on there. What I couldn't understand is why the Tax Calculation didn't include any personal allowance, when last year it did.

I just phoned HMRC to ask them and had been on hold for the last 20 minutes when BOOM! You supplied the answer right here:

Pennywise wrote: »

The main reason why there won't be a personal allowance is if your income has breached the threshold at which the personal allowance is withdrawn. It's withdrawn at income between £100-£120k so if you're total income is that high, that's why the personal allowance isn't available to you.

My PAYE income went above £120k this year. It never twigged that I'd loose my personal allowance altogether. Doh!

Thank you for pointing that one out Pennywise - glad to know I'm not going completely mad!

HarryD

MockTurtle wrote: »

My PAYE income went above £120k this year. It never twigged that I'd loose my personal allowance altogether. Doh!

Yes, the effective income tax rate on income between £100K and £120K (once the personal allowance goes to £10K) is 60%.

Theoretically you could pay a marginal rate of 69% - if you add in self-employed NICs. For example, if you had pension and other "unearned" income of £100K and self employment income of £20K, you'd pay 60% income tax on the £20K, plus 9% NICS on some of that £20K.

A 69% marginal tax rate.

Spidernick

But don't worry, as it's not possible to 'loose' your personal allowance.

(Am I the only one who is amazed at the number of people who cannot spell 'lose'?!!!)

zygurat789

Spidernick wrote: »

But don't worry, as it's not possible to 'loose' your personal allowance.

(Am I the only one who is amazed at the number of people who cannot spell 'lose'?!!!)

According to the OED "to lose" is a verb meaning to be deprived of
http://www.oxforddictionaries.com/definition/english/lose

whereas "loose" is an adjective meaning not tight
http://www.oxforddictionaries.com/definition/english/loose

I see what you mean about spelling, not my stronhg point either, I had to look in the diction[STRIKE]e[/STRIKE]ary.

HarryD

Spidernick wrote: »

But don't worry, as it's not possible to 'loose' your personal allowance.

My personal allowance has been let loose and was last seen living feral in an HMRC office somewhere in the North East.

It would be nice if HMRC would catch it and give it back to me but they won't.

redpete

Spidernick wrote: »

(Am I the only one who is amazed at the number of people who cannot spell 'lose'?!!!)

No you are not