Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • 2805jade
    • By 2805jade 10th Apr 18, 3:24 PM
    • 1Posts
    • 0Thanks
    2805jade
    Really confused by partners Tax Free Amount
    • #1
    • 10th Apr 18, 3:24 PM
    Really confused by partners Tax Free Amount 10th Apr 18 at 3:24 PM
    Just look on the HMRC at partners tax free amount it has completely confused me!


    He earns commission each month, never has a set wage, most he's earnt a year is about 59,000 before tax.
    We always fill in a self assessment because he has a company car and we are over the 50,000 threshold for child benefit.


    But his tax free amount currently shows like this;


    Child Benefit

    4,472


    Underpayment from previous year
    5,228


    Estimated tax you owe this year
    1041.00


    Car benefit
    12,971


    Total deductions
    23,712


    Personal Allowance (PA)
    232


    Why is child benefit showing at 4,472????? Also over underpayment of 5,228 cant be correct as last years self assessment shows as underpayment of 1536.40 and this was to be taken in 2017-2018 tax.

    I hope I've made sense and someone can help me understand it?
Page 1
    • Dazed and confused
    • By Dazed and confused 10th Apr 18, 8:04 PM
    • 2,934 Posts
    • 1,432 Thanks
    Dazed and confused
    • #2
    • 10th Apr 18, 8:04 PM
    • #2
    • 10th Apr 18, 8:04 PM
    Why is child benefit showing at 4,472?????

    It doesn't mean your household is getting child benefit of 4,472. This deduction in the tax code means he will pay extra tax on 4,472 of his taxable salary so as a higher rate payer this is likely to be 1788.80 (4472 x 40%). Child benefit for 2 children is 34.40/week. 34.40 x 52 = 1788.89.
    • Dazed and confused
    • By Dazed and confused 10th Apr 18, 8:16 PM
    • 2,934 Posts
    • 1,432 Thanks
    Dazed and confused
    • #3
    • 10th Apr 18, 8:16 PM
    • #3
    • 10th Apr 18, 8:16 PM
    Also over underpayment of 5,228 cant be correct as last years self assessment shows as underpayment of 1536.40 and this was to be taken in 2017-2018 tax.

    Tax owed from last year's self assessment (2016:17) wouldn't be included in the 2017:18 tax code.

    But are you are actually asking about the 2018:19 tax code?

    In any case the 5,228 works a bit like the Child Benefit deduction in that extra tax will be paid on 5,228 so for a higher rate payer the extra tax will be 2091.20 (5228 x 40%). It could be collecting a different amount though, it depends how much higher rate tax he is paying.
    Last edited by Dazed and confused; 10-04-2018 at 8:19 PM.
    • Dazed and confused
    • By Dazed and confused 10th Apr 18, 8:23 PM
    • 2,934 Posts
    • 1,432 Thanks
    Dazed and confused
    • #4
    • 10th Apr 18, 8:23 PM
    • #4
    • 10th Apr 18, 8:23 PM
    Personal Allowance (PA)
    232


    The Personal Allowance can only be 232 if HMRC think his total income, including taxable salary, company benefits, savings interest etc, is going to be 123,236.

    Google adjusted net income for a more detailed explanation.
    Last edited by Dazed and confused; 10-04-2018 at 8:25 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

143Posts Today

1,161Users online

Martin's Twitter