Why do I always owe tax on PAYE?

venster

Hi.

Just filling out my SA form, as I have to, and yet again It seems I owe HMRC ~£2.5k for the last FY.

If I'm PAYE, with no other income, why would this happen?  Seems every year I owe something - this year, its quite a big chunk.

Would a pay rise, with back pay cause this to happen? 

Surely being PAYE, I have paid the tax on that monthly payment.

TIA

sammyjammy

why are you filling a self assessment if PAYE income is your only income?

Dazed_and_C0nfused

No once can possible answer that without some more details.

It may be you are only entitled to reduced (tapered) Personal Allowance but get too much provisionally via your tax code.

But all guess work at the moment.

venster

sammyjammy said:

why are you filling a self assessment if PAYE income is your only income?

Because I earn over 100K and get sent a letter by HMRC.  

[Deleted User]

venster said:

Hi.

Just filling out my SA form, as I have to, and yet again It seems I owe HMRC ~£2.5k for the last FY.

If I'm PAYE, with no other income, why would this happen?  Seems every year I owe something - this year, its quite a big chunk.

Would a pay rise, with back pay cause this to happen? 

Surely being PAYE, I have paid the tax on that monthly payment.

TIA

Maybe way off the mark but I have encountered it so many times but, are you entering gross pay before pension contributions? Guesswork!

venster

[Deleted User] said:

venster said:

Hi.

Just filling out my SA form, as I have to, and yet again It seems I owe HMRC ~£2.5k for the last FY.

If I'm PAYE, with no other income, why would this happen?  Seems every year I owe something - this year, its quite a big chunk.

Would a pay rise, with back pay cause this to happen? 

Surely being PAYE, I have paid the tax on that monthly payment.

TIA

Maybe way off the mark but I have encountered it so many times but, are you entering gross pay before pension contributions? Guesswork!

I've used the taxable pay from my P60 for that year. Even the info HMRC store is correct, but at the end 'their' calculation says I still owe them money?

As I say, my financial affairs are very straightforward with nothing else to effect things.

pjread

venster said:

sammyjammy said:

why are you filling a self assessment if PAYE income is your only income?

Because I earn over 100K and get sent a letter by HMRC.  

This'll be why then, increasing income between 100-127k(ish) with tax code set based on previous year's income.  ~10k higher income than last FY?

venster

pjread said:

venster said:

sammyjammy said:

why are you filling a self assessment if PAYE income is your only income?

Because I earn over 100K and get sent a letter by HMRC.  

This'll be why then, increasing income between 100-127k(ish) with tax code set based on previous year's income.  ~10k higher income than last FY?

Yes, exactly that.

I apologise as I don't fully understand all this.  Its very complicated.

So, there's nothing I can do about it?

[Deleted User]

The difference between being entitled to the full personal allowance and being entitled to none is £2514 in tax. 

venster

[Deleted User] said:

The difference between being entitled to the full personal allowance and being entitled to none is £2514 in tax. 

Give or take a few quid, that's pretty much the amount....

Flugelhorn

I had similar - found that HMRC were still including professional subs in my coding despite me not claiming them on the SA form for the past 3 years. Ended up actually speaking to someone who worked it all out.