Trying to do tax return and panicking!!

Pilchard

Hi there,

I'm not sure if there's any night owls out there who can help me. I'm trying to do my tax return and, so far it's telling me I owe them £1100!

I have an ill-health retirement pension, which I've had for the past 10 years. All my tax allowance comes out of that. My tax code is 618T. I also work for a company and pay tax at basic rate. Last year I changed jobs so have documented the income from both employers and the tax I paid, as well as that of my pension. I have also added professional subscriptions which I need to do my job and I know have a tax allowance. Last June I started doing mystery shopping but only earned a grand total of £121.50. I've put all these figures in and it has come to the conclusion I owe them £1100. First time I put the figures in it said £950. I know it's something I'm doing wrong but don't know what. I know there's loads of stuff on these pages and have tried to read them all but at the moment I'm very worried. Please help!

Pilchard

Hi there, I hope you can help.

I have an index linked ill health pension and get about £6400/year so all my tax allowance comes out of it as it's classed as my first income. I also work as a nurse in a private company so pay basic rate tax on all my earnings. Last October I changed jobs and have put all the figures down. My first job paid about £570 of my student loan out of my salary but this job hasn't caught up yet. I took out a student loan for one year on my degree in 2003. I also pay out £180 to the Royal College of Nursing, which is a professional body and is allowable. My tax code was altered because in 2004-2005 and 2005-2006 it dropped down to 300 or something and when I finally got a response as to why they said it was cos I was retired and didn't have any entitlement to allowances. I documented all my income and they gave me a refund and amended the code. As I say, I then decided to do some mystery shopping.........and here we are - panicking!

Pilchard

I've looked at the figures and amended the first employer because I'd put down the gross pay instead of the taxable pay and it now says I owe £961. I know I don't need to do it until January but there's no way I can calculate my tax so need them to do it (gonna regret saying that)!

Pilchard

Hi there Jimmo.

Thanks for that. You've reassured me. I couldn't do the return until recently as my current employers didn't give us our P60 until a few weeks ago and then it became a job that had to be done urgently as I knew it'd take me forever (and a few stiff drinks!!). No problem re: tonight. Any help you can give would be appreciated but I wouldn't expect anyone (apart from the disorganised panickers) to be thinking about tax tonight!

Pilchard

Hi there Jimmo

Thanks for trying to see where I've gone wrong (I really hope I have!).

I'm not sure how the tax code came to 618T. In 2004-2005 and for part of 2005-2006 my tax code dropped down to 320 or something. This meant that I was got an increase in my pension overall but the amount I received/month dropped. I enquired as to why but didn't get a reply the first year. On the 2nd year I called and wrote giving all my employment details and that was when they told me I'd been categorised as retired and so didn't have any tax allowance entitlement. They then amended my records, sent me 2 refunds and then sent me details of my tax code being 618T ( although that may have been the beginning of this year.

I know I pay basic rate tax through my employment as my tax code part always says BR. I have never sent my P45's in as initially I didn't think I had to due to the tax thing but then my previous employer didn't send my P60 through until the end of March and I'd started this job last October. This was due to me staying on their books to do some bank work. I usually sign the P46 form when I start a new job. My previous employer took student loan deductions but this one hasn't yet but I know I need to chase it up. This employer is pretty slow in sorting things (hence waiting 4 months for P60's).

In my last job I would have been able to claim for uniform laundering expenses and would have claimed £145 for my registration subscriptions as i need to pay to stay on the register. I haven't claimed this on this tax return, however, as i don't pay it again until next year. I didn't claim the RCN membership when I contacted them before as I'd let the registration lapse but have been a member again for just over a year. This job doesn't have a uniform so I haven't claimed that, although we do have a dress policy.

With regards to my mystery shopping, like I said I've earned about £121 but have claimed for the cost of printing the shopping briefs.

I hope this information sheds a bit more light for you. Thanks again for looking at it for me.

ctm_2

You need to tell us the details of how your tax code is made up, as it seems to be quite high, and may be incorrect, which would explain the underpayment.

All the details will be shown on the P2 notice of coding you received.

ctm_2

jimmo wrote: »

From your point of view the big drawback to the system is that you cannot simply ring up and make an appointment with an advisor. You have to go there and speak to a floorwalker and allow the floorwalker to try to resolve your problem on the spot. Only then will you be offered an appointment.

You can make an appointment before by calling up your tax office and requesting an appointment. You will then be called back by the enquiry centre who will arrange an appointment with you.

But, if you tell us how that code was made up, and your actual income for the year, we will be able to work out most of it for you.

Pilchard

Hi there

Thanks to both of you for the advice. Sorry I didn't reply before but I've been away. I'll look at the yellow form the taxman sent me last year and see what I can find. I think I'd better call them tax office for an appointment because surely they'll have details of previous stuff to do with my tax on their computers?

I'll keep you posted though. :beer:

Pilchard

Hello there

It's me again. I haven't had a chance to go to the tax office cos of work but found my yellow PAYE coding notices so hope this helps sort this puzzle out. I am resigned to the fact that I will probably owe tax though.

On 23/04/04 I was sent a refund for previous years overpayment apparently. The tax allowance box was as follows:
Job Expenses £18
Professional Subscriptions £178
Personal Allowance £4745
Earlier years adjustment £1039

The amount taken away from total adjustment was £155. My tax code was then given as 582T.

On 16/01/05 I received another notice stating that my personal allowance was £4895 minus a starting rate adjustment of £1402 and my tax code was changed to 349T. I assume part of this was due to the fact that I was unemployed from October 2004-December 2004. I queried this but heard nothing.

On 22/02/06 I got another one with the following (hope you're keeping up here!):
Job Expenses £18
Professional Subscriptions £129
Personal Allowance £4895
Starting rate tax allowance £1036.
This gave me a tax code of 607T for 2005/2006.

On the same day I received another notice which was as follows
Job Expenses £18
Professional subscriptions £129
Personal allowance £5035
Starting rate tax allowance £1001 which is the one that gave me a tax code of 618T for 2006/2007.

Doea this make it any clearer?

I know I'm allowed to claim tax back on my RCN subscriptions, my NMC (nursing registration and laundering my uniform, which is what I'd claimed in the tax form then, This year, however, I've only paid the RCN as the NMC was 3 yearly (probably should have broken the cost into 3?) and my current role means I wear business dress, not uniforms so not sure if that counts for laundry?

If you can't help don't worry. I'm just a bit sick that I'm only doing this cos I started mystery shopping to make a bit of extra money and it's costing me instead!! :eek:

many thanks x

Pilchard

Hello there.

I know, it's really confusing. I will get myself sorted and go to the tax office and see if they can put me right.

Thanks for looking at it for me, though. I'll let you know the outcome (once I've sobered up again!!!!!!!!!!!!!!!).

:beer: :beer: