Help HMRC Simple assessment 2018-19 Annual year

audbaud1007

I received a letter also saying I owe £450 for the year 22-23. I was with the same employer but was receiving ESA for some of this time. As I was not receiving my full wages how can I owe tax man money? I am still with the same employer and was ill again last year and had to claim ESA again,  and have received another letter stating I owe £150 for last year. I don't understand how you can owe when you earn less.

eskbanker

audbaud1007 said:

I received a letter also saying I owe £450 for the year 22-23. I was with the same employer but was receiving ESA for some of this time. As I was not receiving my full wages how can I owe tax man money? I am still with the same employer and was ill again last year and had to claim ESA again,  and have received another letter stating I owe £150 for last year. I don't understand how you can owe when you earn less.

Don't the letters offer any explanation of the calculation, in terms of taxable income versus tax deducted via PAYE, etc?

sheramber

audbaud1007 said:

I received a letter also saying I owe £450 for the year 22-23. I was with the same employer but was receiving ESA for some of this time. As I was not receiving my full wages how can I owe tax man money? I am still with the same employer and was ill again last year and had to claim ESA again,  and have received another letter stating I owe £150 for last year. I don't understand how you can owe when you earn less.

Contribution ESA is taxable income but is not taxed when paid.

It is assessed after the end of the tax year along with your PAYE earnings.