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  • FIRST POST
    • elphicks
    • By elphicks 4th Jan 18, 6:36 PM
    • 2Posts
    • 0Thanks
    elphicks
    HMRC self-assessment
    • #1
    • 4th Jan 18, 6:36 PM
    HMRC self-assessment 4th Jan 18 at 6:36 PM
    Hi everyone,
    Hope to get some clarification here from tax experts, or anyone who can see what I'm missing.
    I've submitted my online self-assessment tax return, and HMRC have calculated my tax due after deduction of personal allowance as follows:

    Total income on which tax is due 2,208.00

    How we have worked out your income tax

    Amount Percentage Total
    Pay, pensions, profit etc. (UK rate for England, Wales and Northern Ireland)
    Basic rate 415.00 x 20% 83.00


    Savings interest from banks or building societies, securities etc.
    Starting rate 1,793.00 x 0% 0.00
    Nil rate 0.00 x 0% 0.00

    Total income on which tax has been charged 2,208.00

    Income Tax due 83.00

    I can't understand where the 415 figure comes from-shouldn't they charge me 20% of 2208? I'm self-employed, not that that should make any difference.
    Thanks in advance for any help!
Page 1
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 4th Jan 18, 6:53 PM
    • 3,173 Posts
    • 1,851 Thanks
    TheCyclingProgrammer
    • #2
    • 4th Jan 18, 6:53 PM
    • #2
    • 4th Jan 18, 6:53 PM
    Your total taxable income is any normally taxable income in excess of the personal allowance.

    What was your total taxable profit from your self employed income? On the figures above I!!!8217;m guessing it!!!8217;s 11,415?

    In which case the total of 2208 taxable income is made up of the 415 of self employment income in excess of the personal allowance (11000 for 16/17) and your 1793 of savings income which, also being in excess of the personal allowance, is considered taxable income despite it being taxed at a rate of 0%.
    • 00ec25
    • By 00ec25 4th Jan 18, 6:55 PM
    • 6,513 Posts
    • 6,067 Thanks
    00ec25
    • #3
    • 4th Jan 18, 6:55 PM
    • #3
    • 4th Jan 18, 6:55 PM
    as your yourself have written: taxable income is after the personal allowance has been deducted

    presumably you have not survived a whole year on 415 of pension income and 1,793 of interest?

    presumably your income for 16/17 is :
    self employed profits 11,415 - personal allowance 11,000 (16/17 rate) = 415 taxable income
    https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17#fn:19


    on the basis your taxable income + interest (total 2,208) is so "low" you do not breach the 17,500 threshold meaning you do not pay any tax at all on the interest element (see para 3)

    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
    Last edited by 00ec25; 04-01-2018 at 6:59 PM.
    • elphicks
    • By elphicks 4th Jan 18, 7:51 PM
    • 2 Posts
    • 0 Thanks
    elphicks
    • #4
    • 4th Jan 18, 7:51 PM
    • #4
    • 4th Jan 18, 7:51 PM
    Thanks so much for the quick replies 00ec25 and TheCyclingProgrammer, much appreciated.
    • Dazed and confused
    • By Dazed and confused 4th Jan 18, 8:01 PM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    • #5
    • 4th Jan 18, 8:01 PM
    • #5
    • 4th Jan 18, 8:01 PM
    You are a beneficiary of there now being 0% tax rates. Shame they dont apply to salary and pension income!
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