Why do I always owe tax on PAYE?

Dazed_and_C0nfused

venster said:

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?

Yes you can do something about it.

The key thing is to make sure HMRC's estimate of your taxable earnings (the pay figure which will be reported on your P60) is as up to date as possible.

You can do this in a few minutes in your Personal Tax Account.  

If you think you adjusted net income will be above £125k then the simplest thing is to report this and you'll then have no Personal Allowance.  If income is less you will always get any overpaid tax back in due course.