Self Assessment Query

jolfc

Hi
I am hoping some kind poster may be able to help me with my query.
My partner has filled his self assessment in and is not too sure if he did something incorrectly as the amount of tax seems about £1000 more than anticipated.

This year he received his lump sum pension taxed at source as well as SEISS grants that need to all be added to the self assessment
These are the amounts  

£8929 SEISS
£30270 Pension  ( £11904 tax was deducted by Royal London )

He has now received a rebate of £6564   on the above amounts therefore paying £5340 in tax. 

His self employment figures are as follows

£10885 turnover
£1050 Expenses
Giving profit of  £9835

When the calculation was displayed before submitting the info it said

Total amount due for 2020-21  -  £2957.87
First payment on account for 2021/22  - £0.00
Total to be added to SA due by 31st January 2022 -  £2957.87

My questions are as follows
Could it be that he is in the higher tax bracket at 40%?
Does he pay NICS class 2 and 4 on the pension?
Is that the correct amount?

The way I calculated it was as follows
£9835 + £30270 + £8929 = £49034  - £12500 (personal allowance ) = £36534 x 20% = £7306.80 - £5339.80 ( tax already paid ) = £1967, but I could be totally thick and have missed something in my calculations 
So we are not sure why it is £2957 on the calculation.

Any help would be much appreciated . TIA 

Dazed_and_C0nfused

First thing is if you mean he has received a refund from HMRC (rather than Royal London) them you need to declare the correct tax deduction amount (£11,904) and include the refund in the appropriate box.

That won't immediately make any difference but it will save you getting very very confused if/when HMRC alter your return to include the refund you have failed to declare or worse still investigate the return.

You don't pay Class 2 or 4 NIC on pension income but you do on the self employment and SEISS income (I think) so that looks to be what you have omitted.

Aren't the NIC amount itemised on the calculation?

jolfc

Yes we did tick a rebate had been given and how much tax was taken by Royal London, that shows on P.A.Y.E  section on his account also   

[Deleted User]

The SEISS should be added to you self-employed income. That makes it 18764. There would be Class 4 NIC due on that of 833.56. Class 2 is also due of 156.00. That adds up to 989.56 which accounts for your difference. 

Jeremy535897

Dazed_and_C0nfused said:

First thing is if you mean he has received a refund from HMRC (rather than Royal London) them you need to declare the correct tax deduction amount (£11,904) and include the refund in the appropriate box.

That won't immediately make any difference but it will save you getting very very confused if/when HMRC alter your return to include the refund you have failed to declare or worse still investigate the return.

You don't pay Class 2 or 4 NIC on pension income but you do on the self employment and SEISS income (I think) so that looks to be what you have omitted.

Aren't the NIC amount itemised on the calculation?

Class 2 and 4 NIC on profits of £9,835 plus £8,929 SEISS is about £993, which explains the £990 difference.

jolfc

purdyoaten2 said:

The SEISS should be added to you self-employed income. That makes it 18764. There would be Class 4 NIC due on that of 833.56. Class 2 is also due of 156.00. That adds up to 989.56 which accounts for your difference. 

Thank you for that 
So I was nearly  right    I had just   not added the NIC 2 and 4 on. So no NIC on the pension just the earnings.
I shall let him know , thank you.

jolfc

Dazed_and_C0nfused said:

First thing is if you mean he has received a refund from HMRC (rather than Royal London) them you need to declare the correct tax deduction amount (£11,904) and include the refund in the appropriate box.

That won't immediately make any difference but it will save you getting very very confused if/when HMRC alter your return to include the refund you have failed to declare or worse still investigate the return.

You don't pay Class 2 or 4 NIC on pension income but you do on the self employment and SEISS income (I think) so that looks to be what you have omitted.

Aren't the NIC amount itemised on the calculation?

No it is just a full amount showing,  thank you for your reply 

jolfc

Thank you all for the help 

Jeremy535897

[Deleted User] said:

The SEISS should be added to you self-employed income. That makes it 18764. There would be Class 4 NIC due on that of 833.56. Class 2 is also due of 156.00. That adds up to 989.56 which accounts for your difference. 

Class 2 for 2020/21 is £158.60 (£3.05 x 52) compared with £159.00 for 2019/20 (£3.00 x 53).

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

The SEISS should be added to you self-employed income. That makes it 18764. There would be Class 4 NIC due on that of 833.56. Class 2 is also due of 156.00. That adds up to 989.56 which accounts for your difference. 

Class 2 for 2020/21 is £158.60 (£3.05 x 52) compared with £159.00 for 2019/20 (£3.00 x 53).

The 5p got me!

unholyangel

jolfc said:

Dazed_and_C0nfused said:

First thing is if you mean he has received a refund from HMRC (rather than Royal London) them you need to declare the correct tax deduction amount (£11,904) and include the refund in the appropriate box.

That won't immediately make any difference but it will save you getting very very confused if/when HMRC alter your return to include the refund you have failed to declare or worse still investigate the return.

You don't pay Class 2 or 4 NIC on pension income but you do on the self employment and SEISS income (I think) so that looks to be what you have omitted.

Aren't the NIC amount itemised on the calculation?

No it is just a full amount showing,  thank you for your reply 

Check again on the tax year calculation (not the statement).