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Tax return questions

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textbook
textbook Posts: 786 Forumite
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I have about £6000 self employed net income and 5400 from PAYE, why am I paying £40 tax when I'm below the tax threshold?  I ticked voluntary payment of class 2, is that wise?




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  • Nomunnofun1
    Nomunnofun1 Posts: 689 Forumite
    500 Posts Name Dropper
    edited 29 January at 7:15PM
    textbook said:



    I have about £6000 self employed net income and 5400 from PAYE, why am I paying £40 tax when I'm below the tax threshold?  I ticked voluntary payment of class 2, is that wise?




    This bears no resemblance to the entries in your other thread. What happened to the CIS deductions? Have you transferred part of your allowance to your spouse?
  • eskbanker
    eskbanker Posts: 37,259 Forumite
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    textbook said:
    I have about £6000 self employed net income and 5400 from PAYE, why am I paying £40 tax when I'm below the tax threshold?
    Probably worth sharing the draft calculation from the end of the process rather than selected screenshots?
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,627 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Did you declare some Gift Aid donations?
  • textbook
    textbook Posts: 786 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    eskbanker said:
    textbook said:
    I have about £6000 self employed net income and 5400 from PAYE, why am I paying £40 tax when I'm below the tax threshold?
    Probably worth sharing the draft calculation from the end of the process rather than selected screenshots?





    I put £138 for CIS, that's 20% of net pay i was given but as the company can't find or verify that I worked for them despite getting two bacs payments I might put £0 or nothing to play it safe and not try and claim back any tax ?

    Put a note of this in comments
  • textbook
    textbook Posts: 786 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Did you declare some Gift Aid donations?
    Don't think so
  • mybestattempt
    mybestattempt Posts: 484 Forumite
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    @textbook

    At this late stage I don't think anyone here can say whether your tax return as it stands now is correct.

    It has to be submitted tomorrow to avoid a late filing penalty.

    I'm assuming you have included the estimated gross CIS income in your self employment income?

    If you submit a return with estimates of income and tax deducted you need to say so in the box for additional information and detail how you worked out the estimated figures.
  • Nomunnofun1
    Nomunnofun1 Posts: 689 Forumite
    500 Posts Name Dropper
    textbook said:
    eskbanker said:
    textbook said:
    I have about £6000 self employed net income and 5400 from PAYE, why am I paying £40 tax when I'm below the tax threshold?
    Probably worth sharing the draft calculation from the end of the process rather than selected screenshots?





    I put £138 for CIS, that's 20% of net pay i was given but as the company can't find or verify that I worked for them despite getting two bacs payments I might put £0 or nothing to play it safe and not try and claim back any tax ?

    Put a note of this in comments
    As HMRC will have received the CIS information from the contractor I am not sure declaring zero is playing it safe.
  • textbook
    textbook Posts: 786 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 30 January at 10:08PM
    @textbook

    At this late stage I don't think anyone here can say whether your tax return as it stands now is correct.

    It has to be submitted tomorrow to avoid a late filing penalty.

    I'm assuming you have included the estimated gross CIS income in your self employment income?

    If you submit a return with estimates of income and tax deducted you need to say so in the box for additional information and detail how you worked out the estimated figures.
    I need to add the CIS deduction (20%) £138 onto my self employed total income as well as in CIS section?

    I was gonna put £0 for cis deductions just incase they didn't pay it.  Play it safe and added this note.  Says optional in cis tax section anyhow







  • eskbanker
    eskbanker Posts: 37,259 Forumite
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    edited 31 January at 1:25AM
    Just to clarify what I meant by the calculation at the end of the process rather than another series of screenshots, I'm talking about the single page calculation that immediately precedes submission and is well laid out and easy to follow, i.e. the one that looks something like this:


  • textbook
    textbook Posts: 786 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 31 January at 11:02AM
    eskbanker said:
    Just to clarify what I meant by the

     calculation at the end of the process rather than another series of screenshots, I'm talking about the single page calculation that immediately precedes submission and is well laid out and easy to follow, i.e. the one that looks something like this:




    Can't seem to find the nicely summarised page you show either on pdf or online bit.


    Will get my NI paid for pension?   I added voluntary class 2 payments. 

    I decided to input £138 for CIS as useless company can't confirm I worked for them with a note I'm chasing them up








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