Self Assessment 'View your calculation' too high

se18

Hi there,

I'm hoping the great people of MSE can help me figure this one out!

When attempting to complete my Self Assessment for 14/15 I'm being told that the amount I owe is far higher than I think it should be.

Full Time Employment
Annual gross income = £61,278.04
Tax deducted = £14,154.60

Freelance (Self Assessment)
Turnover = £5,437.51
Expenses = £1,705.90
Profit = £3,731.61

Taxable Income
Income = £65,009
Less tax free allowance = £9,440
Total Taxable Income = £55,569

£32,010 x20% = £6,402
£23,559.00 x40% = £9,423

Total Tax
Total Owed = £15,825
Already Paid = £14,154

Self Assessment
£1,670.00

So by my calculations I owe £1670 but HMRC say I owe £2,542.60.

I just can't figure this one out! Why do they want £872.60 more?

I would really really appreciate some help here.

thanks

anselld

Is the HMRC amount all for the same year or is there a payment on account for the following year?

se18

Hi anselld

I'm pretty sure it's all for the same year.

"
Total amount due for 2014-15 £2,542.60
"

Castle

The tax free allowance should be £10,000. Was there any unpaid tax from 2013/14 included in this year tax code?

se18

Thanks Castle and blondebubbles - appreciate the info.

I think I've actually figured it out! I spent a couple of hours reading up, running calculations and checking every page on the HMRC Self Assessment site.

I owe the £1,476 plus £1,067 in Student Loan repayments.

The problem I have now is that I finished paying my student loan in the last tax year. I have since sent a letter to HMRC to request repayment as they kept taking money from my salary despite the balance being covered. That's another issue though.

Thanks for everyones time especially anselld, Castle and blondebubbles.

dori2o

se18 wrote: »

Thanks Castle and blondebubbles - appreciate the info.

I think I've actually figured it out! I spent a couple of hours reading up, running calculations and checking every page on the HMRC Self Assessment site.

I owe the £1,476 plus £1,067 in Student Loan repayments.

The problem I have now is that I finished paying my student loan in the last tax year. I have since sent a letter to HMRC to request repayment as they kept taking money from my salary despite the balance being covered. That's another issue though.

Thanks for everyones time especially anselld, Castle and blondebubbles.

1) Did you pay any SL via your salary in 2014/15 and if so did you show on the return how much SL you paid via your salary in 2014/15? If not then you need to amend the tax return to show this amount. Any refund would be the responsibility of the SLC to repay, not HMRC.

2) If there was no SL due to be paid in 2014/15, or if the balance was cleared in 2014/15 with the payments you made via your salary, then You need to write to HMRC and request an Informal Standover of the excess student loans amount on the SA calculation. HMRC will put a hold on this amount whilst they check with SLC re the status of the loan for 2014/15. Assuming that the SLC come back and confirm that the loan was paid off prior to 2014/15, or that the balance you say was outstanding is correct then the amount stoodover will be cancelled completely.

So for example, if the charge for student loans was £1500 but the balance to be paid as of 06/04/14 was only £600, then you need to write and request £900 be stoodover

See here
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/390138/CSL1_.pdf

Page 4, 3/4 of the way down, 'What to do if you think the amount of the Self Assessment Student Loans repayment is too much'