First time filling in self assesment.

cherry12345

I have recently received a letter from HMRC stating I need to complete a self assessment tax return as my earnings for the year 22/23 exceeded £100k for the first time (only fairly marginally - my p60 states my earnings as £109k for the year).
All my income is from PAYE (excluding about £300 in savings interest). I have started to complete the tax return online and it is saying I owe £1,900 in tax. I was suprised by this as I assumed my employer would calculate and deduct the necessary tax correctly at source. Could this be because my tax code for last year was the standard 1275L so it didn't take into account the reduction in personal allowance for all earnings over £100k?
Any help on where the £1,900 figure is coming from would be greatly recieved!
Thanks

[Deleted User]

It is exactly that, almost? The standard tax code was 1257L, not 1275L. On £109000 your personal allowance should have been restricted by £4500.  40% of £4500 is £1800. Presumably there is another reason for the additional £100? Was the code actually 1275L? Perhaps there was an adjustment for expenses which you should be claiming on your return to counter what HMRC included in your code?

The employer has no control over your tax code - they simply operate payroll based on the code issued by HMRC. 

Albermarle

 I was suprised by this as I assumed my employer would calculate and deduct the necessary tax correctly at source

That can not be possible as your employer has no idea about your overall tax situation. For example you may be renting out a property or getting taxable income from other sources.

It is your responsibility to check your tax code is correct and inform HMRC if there is a problem with it.

cherry12345

Thanks @Albermarle & @[Deleted User] - this is really useful.
I think I rounded the figure up to £1,900 (I will go back and check the exact amount on my gov account now).
And the point about my employer not knowing about my overall tax situation makes perfect sense. 
Appreciate both your help

[Deleted User]

cherry12345 said:

Thanks @Albermarle & @[Deleted User] - this is really useful.
I think I rounded the figure up to £1,900 (I will go back and check the exact amount on my gov account now).
And the point about my employer not knowing about my overall tax situation makes perfect sense. 
Appreciate both your help

Check the code number. If it is 1275L and not 1257L, there would a reason for it. Check your coding notice for that year for a breakdown.

Jeremy535897

This is somewhat surprising, given the raising of the threshold for HMRC asking a taxpayer to complete a SA return has risen to £150,000.

Dazed_and_C0nfused

But isn't that only from the 2023-24 tax year onwards?

Ommbiance

At the end of the tax return you can look at their calculations for the tax owed. 

Jeremy535897

Dazed_and_C0nfused said:

But isn't that only from the 2023-24 tax year onwards?

It's a bit batty to have to complete your first SA return for 2022/23 and then be taken out again for 2023/24, but I should have realised there is no sense in HMRC.

[Deleted User]

Jeremy535897 said:

Dazed_and_C0nfused said:

But isn't that only from the 2023-24 tax year onwards?

It's a bit batty to have to complete your first SA return for 2022/23 and then be taken out again for 2023/24, but I should have realised there is no sense in HMRC.

No sense at all. I would have thought that those earning between £100000 and 125140 should absolutely be required to complete a return, given the huge potential for underpayments as a result of receiving more personal allowance than appropriate. Those earning over £150000 have long said goodbye to any personal allowance.
So - why change it?

Worpy1

I was in exactly the same situation as my bonus took me to £109k for the year I filled out the self assessment and it said I owed c£800 anyway once I had actually submitted it I got an update saying I had nothing to pay.