Tax owed when working PAYE

lcain

I have worked for same company for nearly 4 years the problem i have is that every year i have to phone tax office to ask why i owe tax when i am PAYE.  I cannot understand their explanation as previously i have never owed tax man anything. I believe a mistake has been made in earlier years.  I have seen advert on tv Taxscouts and was hoping they could sort this out once and for all as i now receive a state pension which i know is taxable and only received this in Oct.  does anyone think this is a good idea to pay someone to sort this. I have recently had a brain haemmorage and recovering. I am technically employed as work have been paying me but dont know for how long. Any advice would be appreciated.

oldbikebloke

so you are in receipt of both state pension and employment income

state pension is, as you know, taxable. Typically the tax on that would be collected by adjusting your tax code to collect it by deduction from your PAYE income.

Such adjustment is only approximate, so quite possible to have a balancing debt due at tax year end. What you may not have appreciated is that tax charged on state pension is based on what you were entitled to receive between 6 April - 5 April, that is rarely the same as what you actually received in cash due to payment dates.

whether paying someone to review your position is cost effective is obviously based on how much tax is at stake.

Dazed_and_C0nfused

lcain said:

I have worked for same company for nearly 4 years the problem i have is that every year i have to phone tax office to ask why i owe tax when i am PAYE.  I cannot understand their explanation as previously i have never owed tax man anything. I believe a mistake has been made in earlier years.  I have seen advert on tv Taxscouts and was hoping they could sort this out once and for all as i now receive a state pension which i know is taxable and only received this in Oct.  does anyone think this is a good idea to pay someone to sort this. I have recently had a brain haemmorage and recovering. I am technically employed as work have been paying me but dont know for how long. Any advice would be appreciated.

It isn't unusual to owe tax whilst on PAYE.

Pay someone if you want but it may be possible to establish what the problem is and what can be done to prevent it happening (if that's possible) by posting details on here.  

unholyangel

OP, do you receive any benefits in kind from your employer? 

macman

Context: how much tax have you received a demand for? 

lcain

I dont receive benefits only PIP which is not means tested. The tax demand says adjustment for tax earlier year £1227, adjustment this year £818, tax you owe earlier years £245, and finally for this year £737.60.
thanks for the replies.

sheramber

if you want to give details of the tax computation for each year and the code number on your P60 for each year someone may be able to help you understand.