How Much Tax will i have to pay?

sheramber

None of the figures you quote add up arithnetically so it is impossible for anybody on here to advise you.

You need someone to sit down with all your paper work and employment history to make any sense of it all.

You need and accountant and the sooner the better as when you get near to the last filing date all accountants will be too busy to take it on.

An accountant cannot tell you the cost as he doesn’t know if it will take him one or six hours to sort things out.

If all your paperwork is on order and he only needs to copy it is a totally different scenario to having to go through payslips and bank statements to gather all the information before he can start to make sense of it all.

molerat

https://forums.moneysavingexpert.com/discussion/comment/82128598#Comment_82128598

The only thing relevant is that Nest say they paid out £7490.14 taxable and deducted £1498 tax. That is what you need to put on your SA, how they arrived at what appeared in your bank is of no interest to anyone.

And for the future every little piece of paper you receive about payments from work or pensions, both into and from, needs to be stored away safely as well as moving any e-mails on the same subjects into a separate safe folder.

faringdon

For the 2025-2026 Tax return........
I've just been through my Tax before actually starting the Tax Return,
and find that I don't owe any income tax , but owe £336.10 in NIC's.
(I am actually due a refund of £480.218 in income tax.)
So in total, the Tax Office owes me £144.13 (due to my over-payment of income tax)

I haven't included the NEST withdrawal in that, because according to my 5 yr Tax Record from HMRC,
ive already payed the tax on that.

Missing out the NEST withdrawal payment:
My total gross pay was £25569.21
(I actually received £21785.31 into my Bank Account.)

My Income Taxable money is £25569.21 - £12570 = £12999.21
20% of the above is £2599.85 (so that's the income tax I would owe)

May NICable money is again £12999.21
8% of that is £1039.94

But over the Tax year, I already payed £3080.06 in income tax
And already payed £703.84 in NIC's.

I haven't included my Travelodge in the above. (so that would mean I am due an even bigger tax rebate.

I have treble checked the above with both payslips and 5yr HMRC tax record.
Have I missed anything?

molerat

SA looks at your total tax situation for the year in question. Every little piece of income whether it has already been taxed or not and whether HMRC know about it or not must be included as well as any bank interest, even if it is only a pound or two, and share dividend income. Any tax already paid will be set against the total tax due and any refund / payment due will then be worked out. That Nest pension will almost definitely not have been "taxed correctly".

Why are you trying to work out the NI due on PAYE income as that is calculated completely differently to tax and is deducted by the employer on an individual pay packet basis, it is not cumulative like tax and nothing to do with SA. Self employed NI is a whole separate subject and unless your profits are in excess of £12569 no NI will be due. Next month your NI record in your on line tax account should show your situation for the 25-26 tax year and will show whether you would need to make some voluntary contributions to fill it up due to a patchy employment year. Which takes us into a whole different area, NI and the State Pension.

faringdon

Thanks, i made £106.08 from interest on my Bank savings account. So i have to include this in the tax return?

It seems strange that just because i did 23 working days of sole trader work in the 2025-2026 tax year, i suddenly have to declare these things that i never usually declare? (ie, when i have a tax year where i just work PAYE i dont declare savings interest).

My total sole trader income was £8698 in the 2025-26 tax year.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82128730#Comment_82128730

As has already been pointed out, a self-assessment tax return needs to be populated with all taxable income that you've received in the relevant tax year, you don't get to pick and choose - the fact that you don't have to submit non-PAYE income when not self-assessing is irrelevant…

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82128730#Comment_82128730

It has nothing to do with whether you're PAYE; plenty of people on PAYE need to complete self assessment tax returns and on them you always include all income received and tax paid in the tax year, including interest.

lincroft1710

You NEED an accountant, repeat, you NEED an accountant!

molerat

On another thread someone has stated that their 25-26 NI record is showing so something for you to check now. While you are there check your SP forecast and look for any NI gaps back to 20-21 (anything beyond that is too late to do anything about)

Grumpy_chap

I haven't included the NEST withdrawal in that, because according to my 5 yr Tax Record from HMRC,
ive already payed the tax on that.

Well, if you are leaving bits of income out in doing the calculation (whether that income has been subject to tax or not), how can you know what tax band applies to the elements of income that are taxable?

Then, how do you know that the tax paid against the income you decided to leave out was correct? You may have paid too much, or too little tax, or exactly correct tax, on that part of your income.

Income Tax is not a series of separate calculations but determined based on your total income for the year (after any allowable expenses have been considered).

May NICable money is again £12999.21
8% of that is £1039.94

That is not how NIC is calculated. I am sure that has been mentioned earlier in this or one of your previous threads.

https://forums.moneysavingexpert.com/discussion/comment/82128757#Comment_82128757

^^THIS^^