Self Assessment: HMRC refunded tax and then want me to refund it back again??

fuzexi

Dazed_and_C0nfused said:

You are getting very very confused.

Who actually deducted tax of £2256.68???

Was this all deducted in the 2020:21 tax year???

You need to look at the PAYE calculation you got last June.

I think this is what you are referring to. 
I pasted it into a Word Document and reduced the font size so I could get it all into a screenshot.:

Dazed_and_C0nfused

You need to check with HMRC, if the £2213.68 was tax overpaid in an earlier tax year then you have only had £43 tax repaid for 2020:21 and only need to declare that amount as tax already repaid.

If you read the question in the first screenshot on your original post you will it asking about 2020:21 tax

You will of course need to include the income (and tax deduction) from the RHS on your return.

And the income from Lola Events.

[Deleted User]

The - ‘other adjustments’ needs to be clarified. The op now needs to complete two employment sections, one for Lola showing the 5109 income and one for RHS showing the income of £215 and the tax deducted of £43.

In the ‘tax already repaid’ section only £43 is entered as that it is only this amount that relates to 2020/21. The ‘other adjustments’ looks like it relates to an earlier year.

fuzexi

Ok, I finally get what you mean!
I thought that the amount refunded was the difference between my personal allowance and how much I earned.... but clearly this is not right .... and I am clearly no mathematician!
I don't know where these adjustments come from, but I do know that I haven't earned anywhere near the tax threshold since 2017. 
I'll just have to call HMRC to get to the bottom of it.
I want to thank you all, I really do appreciate you've gone out of your way to help!

Jeremy535897

This is not the sort of thread I usually comment upon, but I commented on the zero hours contract post, and a number of things strike me as odd. HMRC said on 15 June 2021 that they owed OP £2,256.68. How did they know that, if OP has still to complete the 2020/21 tax return (as per the OP on the other thread and this thread), and at 15 June 2021 presumably HMRC did not know OP had started self employment, and weren't expecting a tax return? I can think of four possibilities:

• PAYE of £2,213.68 was deducted from the pay from TempTribe. Even if the £5,193.68 was net of PAYE, so gross of £7,407, and code 0T was used, that still looks a high deduction for tax and class 1 NIC (I see from the zero hours contract post that this was a zero hours contract ending in November 2020), and it doesn't tie in with the HMRC calculation
• it relates to an earlier year, but that's not what the 15 June 2021 message from HMRC seems to say
• there is another employment somewhere
• OP has already filed a 2020/21 return prior to 15 June 2021 (despite saying they haven't).

The message of 15 June 2021 says "you can find a full calculation and explanation in this letter". Unfortunately all that said per your post is "other adjustments". I can only agree with other posters that you need to get HMRC to explain what this "other adjustment" is, right away.

Remember that the self employment figure you post is the figure net of expenses, not just turnover (and if your expenses are under £1,000, claim the £1,000 trading allowance).

fuzexi

Thanks Jeremy,
I don't understand a lot of the language you use in your reply, but I do appreciate what you are saying. I'm trying to figure it out, phrase by phrase. Not your fault, just terminology...
I'm just preparing to call HMRC, but not too sure exactly what I am to ask them: "what are these adjustments?" yes, but surely there is a mistake... 
From your comment I see I may be entitled to £1000 trading allowance? That would be extremely helpful if I end up having to pay this tax bill, as I really can't afford it!

Dazed_and_C0nfused

It is almost certainly this,

it relates to an earlier year, but that's not what the 15 June 2021 message from HMRC seems to say

PAYE P800 calculations can include unresolved overpayments and underpayments amounts from earlier years, unlike the Self Assessment calculation which is much more prescriptive about what can be included.

fuzexi

It is also possible that I have tried to do a self-assessment in the past, and possibly even have a duplicate account; I don't think I ever successfuly submitted a return though.
I suffer from some kind of memory dysfunction, I think caused by stress - I've had a lot on my plate these past few years - and I genuinely can't remember things. 
I'm phoning HMRC and will try to get everything resolved. Will post back later, hopefully with some good news!

fuzexi

Called HMRC, nice lady, said she'd have to check what the adjustments were and put me on hold... waited for about an hour, so I had to hang up in the end as I had obviously been forgotten. Will try again...

Jeremy535897

fuzexi said:

Thanks Jeremy,
I don't understand a lot of the language you use in your reply, but I do appreciate what you are saying. I'm trying to figure it out, phrase by phrase. Not your fault, just terminology...
I'm just preparing to call HMRC, but not too sure exactly what I am to ask them: "what are these adjustments?" yes, but surely there is a mistake... 
From your comment I see I may be entitled to £1000 trading allowance? That would be extremely helpful if I end up having to pay this tax bill, as I really can't afford it!

When you are self employed, you have to register if your sales are over £1,000 in the tax year. You pay tax on your profit, which is sales less expenses (like goods purchased to sell, telephone costs, motoring costs, insurance etc). If these expenses add up to less than £1,000, you claim a trading allowance of £1,000 instead. These figures reduce your income (in your case, if your sales were £6,500 and your actual expenses were £2,500, you would be taxable on £4,000). If your total income for 2020/21 is under £12,501, you don't pay any tax, but you don't get anything back either.