Tax refund - Is this right

[Deleted User]

BoGoF wrote: »

So you didn't enter the underpaid tax of £2065.80 in box 7 of Sa110 (tax calc). I think that is the correct box.

I suspect there is no refund due

Indeed - an an underpayment of £129.60

Pennywise

cambb wrote: »

added a note in the comments field.

HMRC don't read the tax return notes unless it's picked out for personal attention. It's a purely arithmetical procedure on their part, so they just use the numbers you've entered in each box. If you've not entered the underpayment in the right box, it won't be showing in the calculation. It'll take weeks/months for a human in HMRC to pick it up and read your note, likewise it'll take a while for their computers to talk to eachother and highlight that you didn't put the underpayment in the right box. Quickest way to rectify is for you to submit a correcting return with the figures in the right boxes.

dori2o

The calculation is wrong. This is because, as others have said, you have not shown the amount of tax that was being collected via your tax code.

You need to log back into your self assessment online account and submit an amended return for 2017-2018 which includes the details of the 2065.80 which was being collected in the 2017-2018 tax year.

The tax return is nothing more than a big calculator.

If you forget to enter something into the calculator then the end result will always be wrong.

The underpaid tax from 2015-2016 has to be included as it forms part of the tax due to be collected during the 2017-2018 tax year.

The fact it is not included is the reason why the calculation is showing the wrong result and trying to give you a refund.

If you request this refund, then assuming it is not selected for a security check and is paid to you, then you will eventually get a bill asking for the money back, plus any other outstanding tax. You will also be charged interest on the over-rule the if paid back after 31/01/18.

As Penny-wise says, these forms are not reviewed by a person unless your tax return is randomly selected.

Those people who fill in tax returns but who had a deduction in their tax code to collect additional tax for an earlier year will have their details listed on a worklist. This worklist is automatically reviewed by the Self Assessment and PAYE system to ensure that the correct details, i.e. underpaid tax for earlier years, has been shown on the tax return.

This happens over the course of a few months and starts AFTER the tax return due date.

Again, if you have requested and been paid the erroneous refund you will be expected to pay it back, plus interest, plus any other tax due. This will not be able to be collected in your tax code again.

You need to prevent this by amending the tax return.

If you can't work out how to do it online then either phone or write to HMRC telling them you have not included the underpaid tax for earlier years in your tax code and ask them to amend your tax return.

Sponni

The below is my calculation page:-

Pay from employments £67,499.00
minus allowable expenses £1,272.00
Total income received

£66,227.00
minus Personal Allowance £11,500.00

Total income on which tax is due

£54,727.00

How we have worked out your income tax

Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England, Wales and Northern Ireland)
Accounting companies near me

Basic rate £33,500.00 x 20% £6,700.00
Higher rate £21,227.00 x 40% £8,490.80
Starting rate £0.00 x 0% £0.00
Nil rate £0.00 x 0% £0.00
Basic rate £0.00 x 20% £0.00
Total income on which tax has been charged £54,727.00
Income Tax due £15,190.80
minus Tax deducted
From all employments, UK pensions and state benefits £17,096.00
Total tax deducted £17,096.00
Income Tax overpaid £1,905.20
Estimated overpayment at 31 January 2019


(Note: 2nd payment of £0.00 due 31 July 2019)

This calculation does not take into account any 2017-18 payments on account you may have already made or tax due for earlier years
2017-18 balancing credit £1,905.20
Total overpaid at 31 January 2019

£1,905.20

thanks, understood!