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Confused after first self assessment
janed9388
Posts: 301 Forumite
in Cutting tax
Self assessment for 2016 / 17 needed to be done as my salary had gone to just under 55K and I needed to pay back some child benefit.
Everything was completed online, with a small payment into a SIPP, a little un taxed interest, a bit of gift aid and at the end I owe just about £230 which is what I expected (opted to not pay back from salary but haven't actually paid it yet).
A week later in the post I get a new tax code notice,
£11, 500 allowance,
£2100 pension relief,
£94 gift aid ,
Total tax free £13,694 - no idea why ??? Lovely that they want me to pay less tax but why ? Are they assuming that I'll pay the same into the SIPP etc next year ?
I would have thought if anything that I would get reduced tax free allowance to get their £230 back
Can anyone clarify ???
Everything was completed online, with a small payment into a SIPP, a little un taxed interest, a bit of gift aid and at the end I owe just about £230 which is what I expected (opted to not pay back from salary but haven't actually paid it yet).
A week later in the post I get a new tax code notice,
£11, 500 allowance,
£2100 pension relief,
£94 gift aid ,
Total tax free £13,694 - no idea why ??? Lovely that they want me to pay less tax but why ? Are they assuming that I'll pay the same into the SIPP etc next year ?
I would have thought if anything that I would get reduced tax free allowance to get their £230 back
Can anyone clarify ???
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Comments
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The £230 would not be collected until next tax year - 2018/19. How to the other figures in the tax code match up to your 2016/17 tax return?0
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Thanks for the response. I'll pay the £230 at some point before January. The other figures don't match much at all which adds to the confusion.
My figures were £1583 to the SIPP (includes the 20% automatically paid by the provider), £150 gift aid, £1788 CB received.
Does that make any more sense or am i going to have to call / e-mail them.0 -
Thanks for the response. I'll pay the £230 at some point before January. The other figures don't match much at all which adds to the confusion.
My figures were £1583 to the SIPP (includes the 20% automatically paid by the provider), £150 gift aid, £1788 CB received.
Does that make any more sense or am i going to have to call / e-mail them.
They have assumed that you will be making the same gift aid payment this year too, as the figures tie in exactly (£150 plus the basic tax of £37.50, then halved for you to receive the remaining 20% relief i.e. £94).There is normally a question asking if it is a 'one-off' payment.
The amount that they have assumed you will pay into your SIPP is £4,200 including the basic rate relief. They halve this amount to get you the remaining 20% relief hence £2,100. Not sure how they came to this figure as it does not tie in to the figure you quote for the previous year.
If you are not making these payments in the current tax year, or are paying different amounts, call them and they will change them for you. Eventually, the Personal Tax Account will allow you to change these over the internet but it is not possible as yet!0 -
Thanks for that, the gift aid does make sense now - but no idea where they got the SIPP figure from so I guess I better call them - but I was hoping to avoid that, the sooner you can do it on line the better !0
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