Self assessment calculation query

Annie1612

I have filled in all the information in my self-assessment online form (first time doing this).

 When I hit the button for calculating the amount of tax owed, it comes up with a breakdown stating my personal allowance is 12,570. Now my tax code is 1033N, so that clearly isn’t right. It says in my employment history in the PAYE section of my account that my code was 1033N for the year 24/25. 

Do I need to contact HMRC (😥) about this because the calculation is coming up with 0 tax owed when in reality, I am over my allowances by £458 so some tax is due. Or is this something they will deal with when I submit the form? 

Thanks for any help.

MattMattMattUK

How much did you earn and in what forms of income?
How much tax have you already paid in tax, deducted at source via PAYE or via any payments on account.

Nomunnofun1

Annie1612 said:

I have filled in all the information in my self-assessment online form (first time doing this).

 When I hit the button for calculating the amount of tax owed, it comes up with a breakdown stating my personal allowance is 12,570. Now my tax code is 1033N, so that clearly isn’t right. It says in my employment history in the PAYE section of my account that my code was 1033N for the year 24/25. 

Do I need to contact HMRC (😥) about this because the calculation is coming up with 0 tax owed when in reality, I am over my allowances by £458 so some tax is due. Or is this something they will deal with when I submit the form? 

Thanks for any help.

Your personal allowance is 12570 - that’s what will be included in any calculation. Your tax code is simply a mechanism to attempt to collect the correct amount of tax and looks like it has succeeded!

Have a look at the breakdown of your tax code - pretty sure that it will include personal allowances of 12570.

HappyHarry

From a previous post it appears that the OP has claimed marriage allowance which will lead to a reduced personal allowance.

Bookworm225

lets just confirm you understand the basics first?

Your in year tax code is simply a number used in deciding how much PAYE you pay each month, it has no relevance to your self assessment

That said your tax code shows a) you have given £1,260 (10% but they round it up) of it to your spouse (hence suffix N) and b) there must be a further £980 of income which HMRC has reduced your code by to reach the 1033 code (10,330 tax free) 

where does your "excess" £458 of income arise from?

Annie1612

Thanks for the replies!

Yes I transferred 10% to my husband as per the marriage allowance. The other deduction on my tax code is 973 for untaxed interest on savings. Hence my tax code is 1033N.

The figures I have included in my self assessment are £972 which is earnings from employment and £15819 which is interest from savings. When I add these together and take off my personal allowance of £10333, the starting rate for savings and the £1000 for savings allowance then I am £458 over these allowances. Does that make sense?

sheramber

Have you ticked ‘yes’ to the question about transfer of marriage allowance?

Annie1612

sheramber said:

Have you ticked ‘yes’ to the question about transfer of marriage allowance?

I ticked no because it said in the information section if you are already using the transfer then to tick no because it would be automatically applied when the calculation is done. But it doesn’t seem to have been…?

Dazed_and_C0nfused

Annie1612 said:

sheramber said:

Have you ticked ‘yes’ to the question about transfer of marriage allowance?

I ticked no because it said in the information section if you are already using the transfer then to tick no because it would be automatically applied when the calculation is done. But it doesn’t seem to have been…?

I think it means when you have submitted the return and HMRC have processed it.

So a few days later you will get an updated calculation with the correct (reduced) Personal Allowance.

Not sure why it works like that but it seems to be how HMRC do it.

Bookworm225

Annie1612 said:

Thanks for the replies!

Yes I transferred 10% to my husband as per the marriage allowance. The other deduction on my tax code is 973 for untaxed interest on savings. Hence my tax code is 1033N.

The figures I have included in my self assessment are £972 which is earnings from employment and £15819 which is interest from savings. When I add these together and take off my personal allowance of £10333, the starting rate for savings and the £1000 for savings allowance then I am £458 over these allowances. Does that make sense?

ok you are misunderstanding the tax code - it plays no part in your SA calculation 

rest of message deleted due top typo - see revised version below 

Nomunnofun1

Bookworm225 said:

Annie1612 said:

Thanks for the replies!

Yes I transferred 10% to my husband as per the marriage allowance. The other deduction on my tax code is 973 for untaxed interest on savings. Hence my tax code is 1033N.

The figures I have included in my self assessment are £972 which is earnings from employment and £15819 which is interest from savings. When I add these together and take off my personal allowance of £10333, the starting rate for savings and the £1000 for savings allowance then I am £458 over these allowances. Does that make sense?

ok you are misunderstanding the tax code - it plays no part in your SA calculation 

your situation is 
gross income 16,791 of which 15,819 is interest

your personal allowance is 12,570 - 1,260 (marriage allowance transferred) = 11,260

as your employment income is below the PA you get the full 5,000 @ 0% band starter rate for savings interest.

On top of that you get the 1,000 tax free savings allowance 

so tax free "amount" totals 11.260 + 5,000 + 1,000 = 17,260 v gross income 16,791. Zero taxable income.

On that basis you will not have any tax to pay and the calculation showing 0 is correct 
if any tax has been deducted from your 972 employment earnings in this tax year then it should be refunded

Actually 11310 as opposed to 11260 - which I’m sure was a typo! 👍