Self assessment and SIP’s

westtra

Hi,

where do I get insert my contribution to my company’s SIP in the self assessment for so that it doesn’t try to tax me on my pre tax deduction?

Have gone through the portal a few times and its the last thing I have to figure out. 
thanks

Dazed_and_C0nfused

Do you mean SIPP and was it an employer contribution?

westtra

Share investment plans. The one where it comes off pre tax. 

Dead_keen

If you mean the salary you used to buy partnership shares under a tax advantaged share incentive plan then it is already reflected in your P60.  So, for example, if you would have earned £20,000 and bought £1,000 of partnership shares, your P60 would show £19,000.  The £19,000 is then the starting point to work out the tax due, not the £20,000.

westtra

Unfortunately it doesn’t appear to take that into account. 

I made X

paid tax for X - my pension contribution and SIP payment. 

So doing my self assessment it says I am due them tax as it thinks i underpaid due to the deductions on my payslip pre tax. 

Dead_keen

So if you paid PAYE on the net amount (i.e. your £X - (gross pension contribution + money deducted to buy partnership shares)) then you've had tax relief through the PAYE system.  That's what you'd expect.  The payroll will this net amount on your P60 and send it to HMRC.  So you would start your self-assessment employment pages with the number on the P60.  This would mean that your income tax position is the same as the PAYE position and that you've know more tax to pay.

SIPs are typically operated by large employers with sophisticated payrolls.  I wouldn't expect that partnership share money would be treated wrongly.  If you think that there is an issue, I'd suggest you talk to your payroll people to first and ask them to confirm what they do as there may be another reason.

westtra

Were not a big company and have had issues before with payroll and how tax was paid on benefits(sorted now). 

Not the figures but easy maths for this time in the morning. 

P60 gross 105000
Pre tax deductions 4000(not stated on the p60)
Tax paid 30160

After plugging the 105000 into self assessment form HMRC says I owe £2000 (extra is dividends etc)and playing with tax calculator it ties in with my question of where do I put contributions to get the relief. 

Looks like I need to call HMRC and payroll to find out !!!!!! is going on and how to sort it. 

Sibbers123

SIP contributions are tax advantaged employment related securities… Your payroll department should’ve accounted for these when running payroll and calculating PAYE.

If your income exceeds £100,000 you will lose some of your personal allowance. If your employer has given you a full tax code you will have underpaid tax in the team year.

westtra

No tax code was for exceeding the allowance limit.