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A little confused about a tax demand

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
[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?

Comments

  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    edited 2 November 2019 at 2:50PM
    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 :o
  • 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?
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