Self Assessment - Tax Owing

village_life

jem16 wrote: »

The main point that is being brought up is that your liability might not be as much as you have initially told us if you have not completed your tax return correctly, although it won't be far out.

There is a difference of around £200. This may be down to you omitting to add something to your tax return which accounts for that extra £330 allowance. It may also be down to not quite exact figures when you told us what was on the P60.

It's up to you if you want to find out if you could pay around 3200 less or not but glad to have been of help otherwise.

I've been going back over my records. I think the extra £330 is due to expense mileage allowance - reflected as "Job expenses" on coding notices..... I recall doing something on this a couple of years back on advice of a colleague, but it was only a one off.....

I think I'll just ring HMRC, get that additional allowance removed and then go from there.

jem16

zygurat789 wrote: »

Allowable expenses of £330 does not appear in that paragraph

You have an overpayment of tax (in relation to his income) paid by the OP and benefits in kind in the same paragraph. That would imply the benefits in kind were causing that overpayment.

However I'm not going to argue with you anymore on this.

zygurat789

village_life wrote: »

Hello

I am back now. Thank you for the comments (most of you) there is the usual mix of helpfulness vs stuff to be ignored

So I have provided all the pertinent details, short of producing a photo of my p60 I am not sure what else there is to say. As per comments in the thread given my tax code and the amount of tax paid vs due it does confirm the additional liability which I was unsure of (hence the question).

I still take objection to the fact this situation has been inflicted on me now having received no information from anyone.... And while it's easy to say it is my responsibility to know my tax situation that becomes a pointless debate

That said now from some of the help here (thank you Expecially jem16) the action is clear that I need to ring HMRC and discuss this years liability, should this tax year onwards see me earn my bonus and as such pass the )100k threshold I know now that unfortunately once received (after tax) the money is still not mine and I have to hold back some further tax to be paid..... Great feeling taking nothing from the system and paying for the mess of society, but hey ho!

You really ought to watch your attitude in this country it is a case of "ignorem neminem excusat" and you have been told loud and long about the reduction in personal allowances, if you choose not to listen to news or read papers at budget time then you can't complain.
Where were you born, where were you educated have you ever travelled by road been to a doctor or dentist or hospital. Do you intend to draw your state pension. You've been taking from the system all your life.

jem16

village_life wrote: »

I've been going back over my records. I think the extra £330 is due to expense mileage allowance - reflected as "Job expenses" on coding notices..... I recall doing something on this a couple of years back on advice of a colleague, but it was only a one off.....

Ok so not connected to 2014/15?

If your income was exactly £134k then there's still around £208 tax that you're going to be paying extra.

I think I'll just ring HMRC, get that additional allowance removed and then go from there.

A good idea.

Spidernick

OP,

Do you have the option to have a proportion of your bonus paid directly into the company pension scheme? At that point it is all additional money that you haven't spent and I would recommend this (within the annual £40,000 limit, plus any unused allowance brought forward from the past three years, but bear in mind the limit includes any employer contributions). You should get your taxable income down to the £100,000 limit. The reason for this is that you are suffering an effective 60% tax rate while the personal allowance is phased out, so to my mind it's a 'no brainer' to do this, especially as you are not putting that much into your pension currently. You may even get 62% relief, if the pension is 'SMART' with NI relief too.

village_life

Spidernick wrote: »

OP,

Do you have the option to have a proportion of your bonus paid directly into the company pension scheme? At that point it is all additional money that you haven't spent and I would recommend this (within the annual £40,000 limit, plus any unused allowance brought forward from the past three years, but bear in mind the limit includes any employer contributions). You should get your taxable income down to the £100,000 limit. The reason for this is that you are suffering an effective 60% tax rate while the personal allowance is phased out, so to my mind it's a 'no brainer' to do this, especially as you are not putting that much into your pension currently. You may even get 62% relief, if the pension is 'SMART' with NI relief too.

Hi

thanks, yes I think I probably do have that option, the company tends to offer a salary sacrifice scheme. I do understand the tax effectiveness of this, however we would rather the money in our bank rather than further invested in pension funds. My pension contribution is currently 5% (matched by employer) - not as high as many on here would advocate, but I am (have learnt to be) OK with it, particularly given we have a large asset in the form of our house that we will sell when that period approaches.....

hiving off additional salary to go into a pension isn't something I particularly want to do - in fact, given my acceptance of pension situation I'd be up for a discussion that went along the lines of earning less for a better work/life balance given the "penalty" for higher earning

are you suggesting that by making a payment into a pension now I could mitigate this tax bill somehow? presumably that would involve making a big sum payment into a pension scheme? I cant even get my head around how that might work

jem16

village_life wrote: »

are you suggesting that by making a payment into a pension now I could mitigate this tax bill somehow?

No the chance for that is long gone as you would need to have done this before April 6th. The bill is due and apart from this extra £200 odd there is nothing you can do but pay it.

The suggestion is for future years. Just remember that downsizing doesn't always work as far as providing extra retirement income is concerned. Money in the bank is also not as effective as investing over the long term.

village_life

OK thanks, thought so - but worth checking.

OK with pension arrangements currently.