Basic Rate 20% difference

PJC2017

Hi,

I received a letter from HMRC saying I paid too much tax in 2020/21.
I have been PAYE all year with no additional income.
The letter states my earnings and tax and shows my basic rate at 20% on £39625.
To repay Child Benefit I have to complete a Self Assessment, the self assessment calculation says my basic rate is £37500.

The letter says I have over paid, the self assessment, with the same income entered, is saying I have underpaid due to the difference in the 20% basic rate.

Any ideas why the basic rate would be different?

Thanks in advance

p00hsticks

Are you in Scotland ?

I'm not clear what you are referring to when you talk about a 'Basic rate' - you quote a percentage at first (20% is the basic tax rate in England) but then a monetary value......

PJC2017

I'm not in Scotland.

The basic tax rate is 20% up to £37,500 then 40% up to £150k.

So I'm interested in why my basic rate in the letter would be 20% up to £39,625 but the SA Calc keeps it at £37,500. What things would increase the basic rate threshold?

p00hsticks

I wonder if it may be that you have a non-standard tax allowance.

What is your tax code ?

Are you married ? Has your wife passed some of her tax allowance over to you ?

Marcon

PJC2017 said:

I'm not in Scotland.

The basic tax rate is 20% up to £37,500 then 40% up to £150k.

So I'm interested in why my basic rate in the letter would be 20% up to £39,625 but the SA Calc keeps it at £37,500. What things would increase the basic rate threshold?

Pension contributions if paid gross as an employee contribution?

Dazed_and_C0nfused

PJC2017 said:

Hi,

I received a letter from HMRC saying I paid too much tax in 2020/21.
I have been PAYE all year with no additional income.
The letter states my earnings and tax and shows my basic rate at 20% on £39625.
To repay Child Benefit I have to complete a Self Assessment, the self assessment calculation says my basic rate is £37500.

The letter says I have over paid, the self assessment, with the same income entered, is saying I have underpaid due to the difference in the 20% basic rate.

Any ideas why the basic rate would be different?

Thanks in advance

"Relief at source" pension contributions or Gift Aid are the usual reasons why the basic rate band is increased.

Do you mean you have received a P800 calculation?

If so something has gone wrong as you shouldn't get one of those if you have or are due to complete a Self Assessment return for the same tax year.