How Much Tax will i have to pay?

Grumpy_chap

Also, i am not sure if my sole trader contracts were inside or outside IR35, so am not sure if i can claim for travelodge or not?

If you were working as a "contractor" but inside IR35 you would not normally be sole-trader for that activity but would have been PAYE from the Umbrella Company.

Did you get paid by an Umbrella Company?

faringdon

If you were working as a "contractor" but inside IR35 you would not normally be sole-trader for that activity but would have been PAYE from the Umbrella Company.

Did you get paid by an Umbrella Company?

No there was no umbrella company…the company where i worked simply didnt do any tax for me…and just payed me the full wage, with no tax or NIC deducted. It was said to be a fixed term 3 month contract….ive no idea if it was inside or outside of IR35….i just assumed i would be on PAYE…They must have declared it to HMRC, because i got the tax bill eventually….it was quite a shock as i had had no idea that they hadnt payed the tax for me……they had given me a payslip but i just looked to see if it was "generally the right amount", and it was , so i looked into it no further at the time….but obviously looked into it when this tax bill turned up.

___—- ——————————————-

I must admit my payslips are a mess.
In one company, (i was payed weekly), I worked 4 weeks in the final weeks of tax
year 2025-2026, but they have put only two of those weeks into the
2025-2026 tax year, and pushed the other weeks into the following tax year.
So I presume I only include the two that they put as "Tax period 50" and "Tax period 51"?
The next payslip is down as "Tax period 1"...so presumably that is part of the 2026-2027 tax year?
I hadn't realised how complicated this would be.

— ——

When i withdrew all my NEST pension pot i was payed the £8488.85 and they didnt take any tax. So presumably, i have to declare the 75% of that pot that will be taxed. But NEST website seems to say that the first £267k that anyone withdraws is tax-free. Is this right?…in which case, i dont owe any tax on my NEST withdrawal of £8488.85?

Grumpy_chap

Everytime the OP updates with their comments about paperwork being disorganised and lack of clarity as to what income there has been in what manner and what tax has been incurred, I just become more convinced that the OP does need the services of an Accountant to get it correct. An Accountant might also be able to advise the OP on record keeping so that future tax returns are simpler to administer.

faringdon

Thanks, but i cant afford an accountant.

eskbanker

When i withdrew all my NEST pension pot i was payed the £8488.85 and they didnt take any tax. So presumably, i have to declare the 75% of that pot that will be taxed. But NEST website seems to say that the first £267k that anyone withdraws is tax-free. Is this right?…in which case, i dont owe any tax on my NEST withdrawal of £8488.85?

I doubt that the NEST website says "that the first £267k that anyone withdraws is tax-free" but if it uses those exact words then it would indeed be wrong, in that if you withdraw an entire pension pot then 75% of it is taxable, as you surmise.

As with all the rest of your issues, you need to locate and understand the tax-related paperwork that you've been given by employers, pension providers, etc…

faringdon

Thanks, In my bank account i received £8488.85 from my total NEST withdrawl in July 2025……i am not sure, but i think that was an untaxed figure, as i seem to remember only having some ~£8k in there. However, my 5 year Tax record from HMRC says (as attached), that i payed £1498 tax on the NEST withdrawl, and says the "taxable income" associated with this NEST withdrawal was £7490.14. Please are you able to advise on what's happened here?

NEST TAXED_1.png

molerat

Your figures don't add up, are you sure that is the amount you actually received ? £7490.14 will be the taxable 75% which means the total pension withdrawal should have been £9986.85 which would work out as £2496.71 tax free and £7490.14 taxable using a code of 1257LX deducting £1948.06 tax which means you should have received £7490.14 - £1948.06 + 2496.71 = £8038.79. Nest would have provided paperwork for the transaction, where is that ? HMRC though are not interested in any tax free amounts received, only the taxable amount which Nest have already reported along with the tax deducted - why are you doubting it is correct ?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82127926#Comment_82127926

https://forums.moneysavingexpert.com/discussion/comment/82128348#Comment_82128348

You can't afford not to tbh. Your lack of understanding is making you prime for an HMRC enquiry which may result in fines.

faringdon

Regarding NEST withdrawal……I definitely received £8448.85 from the total NEST withdrawal. I can see that on my bank statement.

I dont have any paperwork from NEST….i moved flat just after the withdrawal and guess any paperwork went to the old flat and is now lost. I now have no internet access to that NEST account as its closed. As discussed, in my HMRC 5 YR Tax record it says as above …..

….that i payed £1498 tax on the NEST withdrawal, and says the "taxable income" associated with this NEST withdrawal was £7490.14. I am baffled as i dont see where the £8488.85 that they actually payed me comes from?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82128348#Comment_82128348

nonetheless I am now in agreement with others, you are so out of your depth that it is pointless you trying to DIY this.

pay an accountant before you make a right mess even worse.
BTW the past tense of to pay is paid, not payed.