2023/2024 Self Assessment Tax Bill - Please HELP

[Deleted User]

jmsa7 said:

[Deleted User] said:

jmsa7 said:

[Deleted User] said:

First things first - the tax liability for 2023/34 is correct (I make it £2004.20 but there we go!) 

There could be any number of reasons for this - increased car benefit but most likely because you are now a higher rate taxpayer and the rental income is mostly at 40%. 

Because your outstanding tax liability is over £1000 you are required to make payments on account for 2024/25.

https://www.gov.uk/understand-self-assessment-bill/payments-on-account

But - the good news!

Because your property income has ceased you are in a position to reduce those payments on account to whatever you think will be outstanding for 2024/25. For example, if you reckon on owing £200 you can reduce EACH payment to £100 meaning that £2104 is payable, err, yesterday! 

You can reduce EACH to zero if you wish but note that interest will be charged if subsequently there is an outstanding liability in 2024/25 which exceeds the total of the two payments on account. You have this option in a question just before submission. 

Hi, thank you for your reply.

How can I be a higher rate tax payer if my total earnings did not exceed £50,270.00? I'm confused.

Salary £41525 plus BIK £7743 plus property income £5510 equals ……?

£54778. 

12570 is free of tax.
37700 is taxed at 20% - £7540
4508 is taxed at 40% - £1803.20

Total tax due £9343.20
less paid £7339.20

Balance due £2004.

Are there any pension contributions? How are they paid?

Thank you very much for that information, I have learnt a few things now.

I do make pension contributions via my employer through salary sacrifice. Why do you ask? Is that relevant?

It would have been relevant had they been made in another manner.