1st timer self-assessment tax return help!

Working_at_home

Hi there, really hoping some of you can help! I am completing a self assessment tax return for the first time as I am receiving child benefit and am now hit with the high income charge for the first time due to my salary. I have stopped the child benefit to avoid a charge next year but am struggling to complete the form this year.  The issue is that in 2020-2021 I was able to claim the tax relief for working from home so this changed my tax code to 1281L rather than 1250L however my 'personal allowance' on the calculation indicates just £12500 and therefore it looks like I owe tax.  I spoke to someone in HMRC this morning who has told me to add £312 into the 'tax returned or offset' however when I do this it ADDS it to the tax I owe increasing it rather than increasing the personal allowance figure.  I have no idea how to correct it or if I'm putting it in the wrong field.  Any help would be greatly appreciated.  Thanks in advance.

[Deleted User]

More questionable advice from HMRC.

You need to claim it on the return. Coincidentally- a similar thread this morning - Instructions on how to claim within it.

https://forums.moneysavingexpert.com/discussion/6327668/covid-working-from-home-on-self-assessment#latest

Dazed_and_C0nfused

You cannot have a Personal Allowance greater than £12,500.

As purdyoaten2 says you need to include the WFH expenses on your return, your tax code is just provisional, it's your tax return that finalises matters.

Working_at_home

I’m a bit confused though as I did claim it through PAYE as I didn’t know I had to complete a self assessment at the time (salary didn’t fall into that bracket) so I obviously paid £125 less tax that year but this is now the difference I’m asked to pay on top of the child benefit charge??! I work for a local government authority and pay via PAYE so my tax couldn’t be wrong 

Dazed_and_C0nfused

I work for a local government authority and pay via PAYE so my tax couldn’t be wrong 

LOL

PAYE tax codes are provisional, if you are not going to include the expenses on your return you will have to repay the tax relief received via your tax code.

Not really sure what the problem is?

[Deleted User]

Working_at_home said:

I’m a bit confused though as I did claim it through PAYE as I didn’t know I had to complete a self assessment at the time (salary didn’t fall into that bracket) so I obviously paid £125 less tax that year but this is now the difference I’m asked to pay on top of the child benefit charge??! I work for a local government authority and pay via PAYE so my tax couldn’t be wrong 

Let’s put it another way. You are now completing your self assessment return. If you do not claim the expense you are, in effect, saying that you were not entitled to it. However HMRC granted the relief through PAYE in your code number and, as a result, you now need to pay this money back. 

Bit abstract but it may help you understand the concept.

Working_at_home

I have no problem claiming the expense my issue is where do I include it on my form and what do I claim for- is it £312 ie £6 per week. I don’t understand why I would have to pay it back if I was entitled to it. I am only completing the self assessment as I have to pay the high income child benefit charge. Apologies if this sounds stupid to everyone but as I said this is my first time doing this so I want to make sure it is right. TIA.

Dazed_and_C0nfused

Working_at_home said:

I have no problem claiming the expense my issue is where do I include it on my form and what do I claim for- is it £312 ie £6 per week. I don’t understand why I would have to pay it back if I was entitled to it. I am only completing the self assessment as I have to pay the high income child benefit charge. Apologies if this sounds stupid to everyone but as I said this is my first time doing this so I want to make sure it is right. TIA.

A Self Assessment return isn't just to pay the High Income Child Benefit Charge, it is for you to declare all your taxable income and claim any expenses/allowances you may be due.

You enter the expenses you wish to claim on the return.  If that is £312 enter £312.  If you only want to claim for one week enter £6.

You seem to be getting confused about what happened provisionally during the tax year and the Self Assessment return which finalises things.

It's not unusual for your tax code to include things which it subsequently turns out aren't relevant.

If you don't claim any expenses on your return them no expenses are due so you will have to repay the tax relief you received via your tax code.

purdyoaten2's post at 11:27am provided al link to another thread explaining where on the return Covid-19 WFH expenses are included.  Should you wish to claim them.