Self-assessment says I've underpaid tax. Don't understand why 7 July 2022 at 1:19PM in Cutting tax 22 replies 431 views

LV_426

I changed jobs at the start of March.
I have to do a self-assessment, as we got child benefit, which we now have to pay back due to salary being over £50k.
I got to the end of the assessment, and it's telling me I've underpaid tax by £1000. Very surprised and don't understand why.
My previous employer didn't issue a P45, just a final payslip. I've used the numbers for total pay and tax from this, plus the P60 from my current employer.

I was expecting to pay back some of the child benefit, but not expecting a tax underpayment. Any ideas?

Can I get this checked, or do I just have to cough up?

purdyoaten2

Have you entered the ‘taxable pay to date’ as opposed to the ‘gross pay to date’? The former is correct.

This is one of what could be a number of explanations.

LV_426

purdyoaten2 said:

Have you entered the ‘taxable pay to date’ as opposed to the ‘gross pay to date’? The former is correct.

Hmm now this is interesting. Because on my final payslip, the 'TotGross' and 'TxblePay' are the same. That seems wrong, because I was paying £500/month into the company pension plan. 

theoretica

Did you have one month where you got salary from both employers?  It can sometimes happen that you get 13/12ths of your tax free allowance by mistake as both employers try to put it through for the same month.  And two half payments in one month would have missed out on higher rate tax too.

purdyoaten2

LV_426 said:

purdyoaten2 said:

Have you entered the ‘taxable pay to date’ as opposed to the ‘gross pay to date’? The former is correct.

Hmm now this is interesting. Because on my final payslip, the 'TotGross' and 'TxblePay' are the same. That seems wrong, because I was paying £500/month into the company pension plan. 

Pension likely to be paid from net pay. As I say - could be down to many reasons. Perhaps you could put up some figures?

LV_426

Yes I got paid by both employers in March.

The underpayment of £1000 seems a rather large amount to lose in the change of employer though.

What figures do you need me to show?

The pension was salary sacrifice, so taken off the taxable gross.

LV_426

BTW I have phoned HMRC about this, and after waiting 30 mins, they weren't very helpful, and I didn't get any satisfactory answers.

Dazed_and_C0nfused

LV_426 said:

BTW I have phoned HMRC about this, and after waiting 30 mins, they weren't very helpful, and I didn't get any satisfactory answers.

Not sure how you can expect to get satisfactory answers when you're not sure what has happened in the first place?

sheramber

With salary sacrifice you elect to receive less gross pay and your employer makes pension payments.

So your gross pay is  what you get paid. 

You do not make any pension payments. Your employer makes pension payments. Is their an entry on your P60 showing employers pension payments?

What pay and tax  are shown on final payslip?  Code number and month number?

What are the corresponding  figures on the P60?

theoretica

How does total pay in March and total tax in March compare to other months?

lisyloo

I calculate mine myself - for my circs it's not that difficult.
Although it's a bit intrusive I think you'll need to post real numbers to get help with the calcs on this.
And explain how your pension get paid - salary sacrifice, net pay etc.