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A little confused about a tax demand
Iwanttobefree
Posts: 2,534 Forumite
in Cutting tax
Background:
Had my ESA stopped for two years while appealing. Last Dec, I took part of my pension as a lump sum, and as I wasn't earning, claimed the £2080 tax back.
I won my tribunal and had that backdated.
Tax form looks like
That makes sense to me, a total of £13801.88 minus my personal allowance of £11850 = £1951.88
However the form then goes on to say
Can someone explain how my total taxable income went from £1951.88 to £3141.00 please?
Many thanks
Had my ESA stopped for two years while appealing. Last Dec, I took part of my pension as a lump sum, and as I wasn't earning, claimed the £2080 tax back.
I won my tribunal and had that backdated.
Tax form looks like
[B]Income[/B] Pension £7501.96 income Tax £2029.80 Pension £255.86 income tax £51 DWP ESA £6044.95 income tax £0 [B]Total £13801.88 income tax £2080.80[/B] [B]Less your allowance[/B] Personal Allowance £11850.00 Total tax free amount £11850.00 [B]Your total taxable income £1951.88[/B]
That makes sense to me, a total of £13801.88 minus my personal allowance of £11850 = £1951.88
However the form then goes on to say
[B]Income tax rates[/B] Basic rate at 20% on £3141 Income tax £628.20 [B]Total £3141 Income tax £628.20[/B] [B]Result[/B] Total tax payable £628.20 Tax you've already paid £2080.80 Tax already repaid to you for the year £2080.80 [B]You owe HMRC £628.20[/B]
Can someone explain how my total taxable income went from £1951.88 to £3141.00 please?
Many thanks
The way things are going, soon we are all going to be victims of something or other.
Who will we blame then?
Who will we blame then?
0
Comments
-
Had you applied for Marriage Allowance for that tax year?
If so your Personal Allowance would only be £10,660. Which would make the calculation appear correct.
No idea why your Personal Allowance isn't actually shown as £10,660 though
0 -
Ah thanks. Yes as I can't work I transferred my allowance to my wife.The way things are going, soon we are all going to be victims of something or other.
Who will we blame then?0
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