First time tax self assesment

Jami74

Help!

I've just filled in my first ever tax return and I think I've gone wrong.

I was employed for the year earning £17k+ which I paid PAYE and NI on and entered these details on the form.

I also did some self employed work with an income of about £1200 and expenses of just over £200. So profit of about £900.

At the end it tells me I owe £425 in tax :eek:

I thought at most tax would be 20%

[Deleted User]

What tax did you pay on PAYE?

And why have you not claimed trading allowance?

https://forums.moneysavingexpert.com/discussion/5955514/coaching-saturday-job

Jami74

[Deleted User] wrote:

What tax did you pay on PAYE?

And why have you not claimed trading allowance?

https://forums.moneysavingexpert.com/discussion/5955514/coaching-saturday-job

I paid nearly £900 PAYE, my personal tax code include marriage allowance and what I paid in tax works out at about 20% of what I earnt over my personal tax code. In fact, I got a rebate of about £50.

I don't understand what trading allowance is or how I claim it. Is it through my PAYE tax rather than self assessment?

Edited to add: Okay I've just gone back and added £1000 to trading allowance as I hadn't completed after the calculation. Now it is taxing me on my whole income. Do they normally take too much tax and then rebate?

[Deleted User]

Did you read the thread link that I quoted - the post from pennywise?

There is a ox to claim it on the self-employed section.

I also suspect that you may not have claimed marriage allowance when filling in the form.

Dazed_and_confused

In fact, I got a rebate of about £50

What do you mean by this? Who paid the rebate, for what tax year and when was it paid?

Does you tax calculation include a tax deduction of £230 for Marriage Allowance (it doesn't entitle you to extra allowances).

Jami74

[Deleted User] wrote:

Did you read the thread link that I quoted - the post from pennywise?

There is a ox to claim it on the self-employed section.

I also suspect that you may not have claimed marriage allowance when filling in the form.

Yes I did thanks. I have filled in the box now for trading allowance.
I have gone back and ticked the box for marriage allowance which was part of my tax code for that year.

Dazed_and_confused

I've just filled in my first ever tax return and I think I've gone wrong.

Couple of hours pain this January will make next January so simple

Jami74

Dazed_and_confused wrote: »

What do you mean by this? Who paid the rebate, for what tax year and when was it paid?

Does you tax calculation include a tax deduction of £230 for Marriage Allowance (it doesn't entitle you to extra allowances).

It was a tax rebate from HMRC into my bank account as I overpaid PAYE tax for 17/18 and it was paid in June 18. Is it relevant? My PAYE earnings and tax are all balanced and complete.

I'm sorry I think I used the wrong words. As I was the higher earner my partner transferred some of his personal tax allowance to me, I also claimed some professional fees so my personal tax code for PAYE for that year is 1350M.

Dazed_and_confused

Is it relevant

Yes.

It sounds like HMRC have assumed you weren't filing a Self Assessment return hence the repayment.

As you are filing a return you will have to declare this refund on the return, there is a box for this, something like tax already refunded...

Your tax code is just a provisional attempt to collect the correct tax. It is your tax return (if one is required) which produces the final result. Hence needing to include Marriage Allowance, professional fees etc. If they are still due you need to show them on the return, being in your tax code is to a large degree irrelevant.

[Deleted User]

Tax refunded or set off

If you’ve had any 2017–18 Income Tax refunded or set off by us or Jobcentre Plus, enter the amount

Jami74

Ah man! I honestly thought it would be just a case of telling them my self-employed earnings and expenses and paying tax on the profit. I even made sure to save 20% of it as I went along.