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  • FIRST POST
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:10 PM
    • 1,013Posts
    • 435Thanks
    scaredofdebt
    Tax Rate for Self Assessment
    • #1
    • 11th Jan 18, 2:10 PM
    Tax Rate for Self Assessment 11th Jan 18 at 2:10 PM
    Hi,

    I work full time and am on PAYE, I earned 25k approx gross in the 2016-17 tax year.

    I also do some freelance work, I am doing my SA return and my net income from this (after allowable deductions) is 3,239.

    I was expecting the tax bill for that to be a straight 20% ie around 640 but the SA site is saying it's 869 which works out at around 28%

    What am I missing? I'm not earning enough to pay additional NI am I?

    Thanks,

    David
    Make 2018 in 2018 Challenge - Total to date 1,359
Page 1
    • BoGoF
    • By BoGoF 11th Jan 18, 2:16 PM
    • 3,215 Posts
    • 2,532 Thanks
    BoGoF
    • #2
    • 11th Jan 18, 2:16 PM
    • #2
    • 11th Jan 18, 2:16 PM
    Do you have a student loan?
    • BoGoF
    • By BoGoF 11th Jan 18, 2:19 PM
    • 3,215 Posts
    • 2,532 Thanks
    BoGoF
    • #3
    • 11th Jan 18, 2:19 PM
    • #3
    • 11th Jan 18, 2:19 PM
    If not then the additional tax above the 20% on your self-employed income must be due to underpaid PAYE. Did you have and taxable bemefits from employment?
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:20 PM
    • 1,013 Posts
    • 435 Thanks
    scaredofdebt
    • #4
    • 11th Jan 18, 2:20 PM
    • #4
    • 11th Jan 18, 2:20 PM
    No.

    I've just had a look at their calculation and it looks like my employer hasn't been deducting enough tax, which I find hard to beleive as it's a blue chip company with 10k plus employees.

    I wonder if my company pension payments might be an issue?

    They seem to be saying I've underpaid through PAYE by 200 odd over the year.

    I do have 30 odd a month deducted from my salary as I have bought some extra holiday, wonder if that's it?

    Thanks for any help.
    Make 2018 in 2018 Challenge - Total to date 1,359
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:22 PM
    • 1,013 Posts
    • 435 Thanks
    scaredofdebt
    • #5
    • 11th Jan 18, 2:22 PM
    • #5
    • 11th Jan 18, 2:22 PM
    If not then the additional tax above the 20% on your self-employed income must be due to underpaid PAYE. Did you have and taxable bemefits from employment?
    Originally posted by BoGoF
    I posted my above before I saw this. Not really sure about benefits, just the company pension really and the holidays I buy.
    Make 2018 in 2018 Challenge - Total to date 1,359
    • BoGoF
    • By BoGoF 11th Jan 18, 2:22 PM
    • 3,215 Posts
    • 2,532 Thanks
    BoGoF
    • #6
    • 11th Jan 18, 2:22 PM
    • #6
    • 11th Jan 18, 2:22 PM
    Did you enter your P60 figures?

    Care to share them and your tax code.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:28 PM
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    • 435 Thanks
    scaredofdebt
    • #7
    • 11th Jan 18, 2:28 PM
    • #7
    • 11th Jan 18, 2:28 PM
    Yeah:

    25,188 Pay (gross)
    2,615.80 Tax

    Final Tax Code 1201M

    HMRC look to have my tax code wrong as they've only given me 11k allowance but that code would denote 12k?

    Thanks.
    Make 2018 in 2018 Challenge - Total to date 1,359
    • BoGoF
    • By BoGoF 11th Jan 18, 2:30 PM
    • 3,215 Posts
    • 2,532 Thanks
    BoGoF
    • #8
    • 11th Jan 18, 2:30 PM
    • #8
    • 11th Jan 18, 2:30 PM
    That tax code will suggest you have claimed expenses or tax relief on something. You need to find out how your code was made up.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:39 PM
    • 1,013 Posts
    • 435 Thanks
    scaredofdebt
    • #9
    • 11th Jan 18, 2:39 PM
    • #9
    • 11th Jan 18, 2:39 PM
    I've registered for the marriage allowance, think it's 20 a month or something I pay less tax.

    https://www.gov.uk/marriage-allowance

    My wife earns less than me so I believe it's a portion of her allowance that's transferred to me. Filled the forms in online over a year ago.
    Make 2018 in 2018 Challenge - Total to date 1,359
    • BoGoF
    • By BoGoF 11th Jan 18, 2:42 PM
    • 3,215 Posts
    • 2,532 Thanks
    BoGoF
    You need to claim that relief in your Tax Return.
    • whitewitch21
    • By whitewitch21 11th Jan 18, 2:45 PM
    • 45 Posts
    • 15 Thanks
    whitewitch21
    I've registered for the marriage allowance, think it's 20 a month or something I pay less tax.

    https://www.gov.uk/marriage-allowance

    My wife earns less than me so I believe it's a portion of her allowance that's transferred to me. Filled the forms in online over a year ago.
    Originally posted by scaredofdebt
    Have you claimed that on your return? Could explain the discrepancy.
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:47 PM
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    • 435 Thanks
    scaredofdebt
    Thanks - do you know where I would claim that, can't see anywhere obvious on the online forms.
    Make 2018 in 2018 Challenge - Total to date 1,359
    • scaredofdebt
    • By scaredofdebt 11th Jan 18, 2:50 PM
    • 1,013 Posts
    • 435 Thanks
    scaredofdebt
    http://forums.moneysavingexpert.com/showthread.php?t=5443240
    Make 2018 in 2018 Challenge - Total to date 1,359
    • scaredofdebt
    • By scaredofdebt 23rd Jan 18, 11:23 AM
    • 1,013 Posts
    • 435 Thanks
    scaredofdebt
    Just to update this, I got a letter from HMRC with the correct figure, ie they have worked out I should be getting the Married Allowance so the amount they want me to pay agrees with my working out.

    Make 2018 in 2018 Challenge - Total to date 1,359
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