Employed only, HMRC wants more tax than my P60

jsunm
jsunm Posts: 2 Newbie
in Cutting tax
Hello you lovely people.
I just did my Self Asst. I have three income streams. Newly self employed sub £1k, so no tax there, old dividends from my closed company sub £5k, so no tax there, and a job with the Council. I am puzzled that when I have finished filling everything in (and a couple of minor tweaks are made for the difference on mileage expenses and a bit of taxed interest) I am told I have to pay £70 more tax. I used my P60 and the Council job at 25k pa is all I had! Can anyone guess why this happened?
Cheers
J

Comments

  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    have you looked at the details of the calculation?

    We unfortunately cannot see them from here, so cannot say what may or may not, have been taken into account to give you the extra £70
  • Savvy_Sue
    Savvy_Sue Posts: 46,019 Forumite
    Name Dropper First Post First Anniversary
    Your profit from self employment may be sub £1000 but it is still taxable income. Why would you not expect to pay tax on it?
    Signature removed for peace of mind
  • jimmo
    jimmo Posts: 2,281 Forumite
    Name Dropper First Post First Anniversary
    Savvy_Sue wrote: »
    Your profit from self employment may be sub £1000 but it is still taxable income. Why would you not expect to pay tax on it?
    Its the new tax allowance for trading and letting.
    https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
  • noh
    noh Posts: 5,799 Forumite
    Name Dropper First Post First Anniversary
    Savvy_Sue wrote: »
    Your profit from self employment may be sub £1000 but it is still taxable income. Why would you not expect to pay tax on it?

    Because of the £1000 allowance for trading income?
    https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income
  • Savvy_Sue
    Savvy_Sue Posts: 46,019 Forumite
    Name Dropper First Post First Anniversary
    Sorry, I'm obviously confused about that: I thought if it was only income.

    Then I have two suggestions, 1) look at the calculations as 00 suggests, and 2) have they messed up?
    Signature removed for peace of mind
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    edited 5 May 2018 at 11:18PM
    There are a number of possibilities including,

    Dividend income can increase the tax due even if is itself taxed within the dividend 0% tax rate.

    The op may have entered incorrect figures

    The op may have forgotten to include some expenses which were (provisionally) included in their tax code

    The op's tax code may have been wrong i.e. it included something which the op is no longer claiming

    The self assessment calculation may be wrong

    More information is needed to know what the real reason is
  • noh
    noh Posts: 5,799 Forumite
    Name Dropper First Post First Anniversary
    Is it because the OP has entered his sub £1000 income from self employment?

    The HMRC link in my post above says

    "Where the allowances cover all of an individuals relevant income (before expenses) then they will no longer have to declare or pay tax on this income. Those with higher amounts of income will have the choice, when calculating their taxable profits, of deducting the allowance from their receipts, instead of deducting the actual allowable expenses."

    Therefore if the self employment income is less than £1000 it does not need to be declared on the SA return.
    If the OP has declared it then tax due will be calculated on that income.

    OP was your self employed income around £350?
  • jsunm
    jsunm Posts: 2 Newbie
    It was about 850 but I did not declare it, only added a reference to it in Other Info. But knowing there's the potential for knock-on effects from my other bits on income is sort of reassuring: a 'known unknown' if you like. It's only £50. Thanks to D+C and noh for having a stab when I obviously cannot put all the details up here.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    jsunm wrote: »
    when I obviously cannot put all the details up here.
    why, how do you think you will be recognised? What point in asking what went wrong when no one has the details to answer such a question.
This discussion has been closed.
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