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Tax calculation wrong
Goingroundincircles
Posts: 106 Forumite
in Cutting tax
This may well be baby brain, but I'm completing my husband's tax return (as I do every year) and I think the amount due calculation is wrong. I don't think it has taken into account his personal tax free allowance. How can this be possible? I've ticked 'no' he wasn't an employee.
For example:
Net earnings £30544
CIS tax already deducted £1873
Total tax outstanding £4098 (not including payment for next year)
But I believe:
£30544 less £11500 (tax free allowance) - £19044
£19044 @ 20% - £3808
£3808 less £1873 (CIS) - £1935 outstanding
The difference is £2300 which is 20% of £11500 which is what has led me to believe his tax free allowance hasn't been included.
So, long ramble, but I am right and if so what have I done wrong?! Help!
For example:
Net earnings £30544
CIS tax already deducted £1873
Total tax outstanding £4098 (not including payment for next year)
But I believe:
£30544 less £11500 (tax free allowance) - £19044
£19044 @ 20% - £3808
£3808 less £1873 (CIS) - £1935 outstanding
The difference is £2300 which is 20% of £11500 which is what has led me to believe his tax free allowance hasn't been included.
So, long ramble, but I am right and if so what have I done wrong?! Help!
0
Comments
-
Nope it is Class 4 NIC - (30544-8164) at 9% = 2014.12
and Class 2 - 148.20
Total 2160.32 - pretty close!0 -
What about Class 2 and 4 National Insurance.
And Student Loan (if applicable).
Wouldn't it be easier for you to get help on here if you just posted the actual calculation in full
0 -
I knew it was baby brain!! Thank you both.0
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