Self assessment calculation query

Annie1612
Annie1612 Posts: 162 Forumite
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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.
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Comments

  • MattMattMattUK
    MattMattMattUK Posts: 10,850 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    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
    Nomunnofun1 Posts: 573 Forumite
    500 Posts Name Dropper
    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
    HappyHarry Posts: 1,775 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    From a previous post it appears that the OP has claimed marriage allowance which will lead to a reduced personal allowance.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • Bookworm225
    Bookworm225 Posts: 314 Forumite
    100 Posts Name Dropper
    edited 26 May at 2:08PM
    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
    Annie1612 Posts: 162 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    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
    sheramber Posts: 21,876 Forumite
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    Have you ticked ‘yes’ to the question about transfer of marriage allowance?
  • Annie1612
    Annie1612 Posts: 162 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    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
    Dazed_and_C0nfused Posts: 17,241 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    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
    Bookworm225 Posts: 314 Forumite
    100 Posts Name Dropper
    edited 26 May at 2:00PM
    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
    Nomunnofun1 Posts: 573 Forumite
    500 Posts Name Dropper
    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! 👍
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