Self-assessment tax calculation query

LMA1980 · 22 June 2022 at 6:42PM

Hi all,
I'm doing self-assessment for the first time. on the tax calculation page I get this message:

"Total tax repayable to you for 2021-22

THE AMOUNT

HM Revenue and Customs will add this amount to your Self Assessment statement of account. It doesn't include any 2021 to 2022 payments on account you may have made or any other amounts outstanding. To help you to decide how much, if anything, to pay by the due date, check your Self Assessment account and use the information above until it transfers over."

Does this mean HMRC owe me rather than I owe them? I'm only doing self-assessment because of changing jobs mid year with a wage increase and thought with claiming child benefit we might be liable for the tax charge. Have put pension payments into the form so maybe this could be offsetting the child benefit tax charge as was only just over £50k earnings. But I'm not sure why HMRC would be owing me money back? Not complaining if it is the case though.

Dazed_and_C0nfused · 22 June 2022 at 6:55PM

I'm not sure how else you could interpret this?

Total tax repayable to you for 2021-22

Are you certain you should have included the pension contributions?

Most contributions shouldn't be included.

What method did you use to contribute?

Net pay

Salary sacrifice

Relief at source

Gross contribution with no tax relief at point of payment (usually public sector schemes)

LMA1980 · 24 June 2022 at 10:25AM

Dazed_and_C0nfused said:

I'm not sure how else you could interpret this?
Total tax repayable to you for 2021-22
Are you certain you should have included the pension contributions?
Most contributions shouldn't be included.
What method did you use to contribute?
Net pay
Salary sacrifice
Relief at source
Gross contribution with no tax relief at point of payment (usually public sector schemes)

Thanks for your reply. I was told if earnings go into the higher tax bracket to put pension contributions on the form in order to claim the tax relief on the higher portion.

Dazed_and_C0nfused · 24 June 2022 at 10:31AM

LMA1980 said:

Dazed_and_C0nfused said:

I'm not sure how else you could interpret this?
Total tax repayable to you for 2021-22
Are you certain you should have included the pension contributions?
Most contributions shouldn't be included.
What method did you use to contribute?
Net pay
Salary sacrifice
Relief at source
Gross contribution with no tax relief at point of payment (usually public sector schemes)

Thanks for your reply. I was told if earnings go into the higher tax bracket to put pension contributions on the form in order to claim the tax relief on the higher portion.

Whoever told you that was talking rubbish.

Only contributions made using two of the four normal methods need to be declared on a Self Assessment return.

If you have included contributions on which you have either already received the maximum possible tax relief (net pay) or don't even pay yourself (salary sacrifice) then you are opening yourself upto investigation by HMRC

You need to understand what method you have contributed under before you can,

1). Know how to complete the tax return

2). Understand how the tax relief works in your particular scenario

LMA1980 · 24 June 2022 at 11:19AM

Dazed_and_C0nfused said:

LMA1980 said:

Dazed_and_C0nfused said:

I'm not sure how else you could interpret this?
Total tax repayable to you for 2021-22
Are you certain you should have included the pension contributions?
Most contributions shouldn't be included.
What method did you use to contribute?
Net pay
Salary sacrifice
Relief at source
Gross contribution with no tax relief at point of payment (usually public sector schemes)

Thanks for your reply. I was told if earnings go into the higher tax bracket to put pension contributions on the form in order to claim the tax relief on the higher portion.

Whoever told you that was talking rubbish.

Only contributions made using two of the four normal methods need to be declared on a Self Assessment return.

If you have included contributions on which you have either already received the maximum possible tax relief (net pay) or don't even pay yourself (salary sacrifice) then you are opening yourself upto investigation by HMRC

You need to understand what method you have contributed under before you can,

1). Know how to complete the tax return
2). Understand how the tax relief works in your particular scenario

Thanks. I have a private pension scheme where the contribution is paid by direct debit from the bank to the pension provider. I believe they then claim 20% on top from the government. So is that would be relief at source?

Dazed_and_C0nfused · 24 June 2022 at 11:25AM

LMA1980 said:

Dazed_and_C0nfused said:

LMA1980 said:

Dazed_and_C0nfused said:

I'm not sure how else you could interpret this?
Total tax repayable to you for 2021-22
Are you certain you should have included the pension contributions?
Most contributions shouldn't be included.
What method did you use to contribute?
Net pay
Salary sacrifice
Relief at source
Gross contribution with no tax relief at point of payment (usually public sector schemes)

Thanks for your reply. I was told if earnings go into the higher tax bracket to put pension contributions on the form in order to claim the tax relief on the higher portion.

Whoever told you that was talking rubbish.

Only contributions made using two of the four normal methods need to be declared on a Self Assessment return.

If you have included contributions on which you have either already received the maximum possible tax relief (net pay) or don't even pay yourself (salary sacrifice) then you are opening yourself upto investigation by HMRC

You need to understand what method you have contributed under before you can,

1). Know how to complete the tax return
2). Understand how the tax relief works in your particular scenario

Thanks. I have a private pension scheme where the contribution is paid by direct debit from the bank to the pension provider. I believe they then claim 20% on top from the government. So is that would be relief at source?

Yes. And those contributions do need to be shown on a Self Assessment return if one is being completed.