Viewing 12 posts - 1 through 12 (of 12 total)
  • unpaid tax self assessment question
  • mudmuncher
    Full Member

    This is really confusing me and the inland revenue can’t explain it so wondering if anyone on here can figure it out.

    I have approx £500 underpaid tax showing from previous years that it says was collected in my 2014/15 tax code.

    Now to me this means I already paid it, so not sure why it is in the calculation and when I look at my self assessment tax calculation it shows the tax I should have paid this year (X) and the tax my employer took off (Y), so to my mind I should pay X-Y, but what it is actually showing is (X+£500)-Y. So to me it looks like I’m paying this £500 twice (once in my 14/15 tax code and again when I have to send them a cheque in a few days)

    Am I missing something?

    somouk
    Free Member

    Was your 14/15 tax code altered to collect the extra or should it have been and they never did it?

    Were you employed on PAYE then or self employed?

    mudmuncher
    Full Member

    Just PAYE regular employee, I’m assuming my tax code was changed to collect this £500 as this is what was showing online when I went into the return

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    somouk
    Free Member

    That will be the only way you will tell, to confirm the tax code change with your employer happened and you were taxed correctly.

    They may be thinking if you are also doing a self assessment return that your employer will tax you as normal and you will then pay the £500 as it is outside of your normal employment tax.

    dooosuk
    Free Member

    Sounds like X is the amount of tax you should have paid on your PAYE salarly, so they’re adding the £500 to it (correctly IMO).

    You need to know what X is.

    Treborian
    Free Member

    If your 14/15 tax code was changed, it sounds like you may the same issue again, in that you have underpaid tax in 14/15 becuase your tax code was wrong. You need to look at your coding notice and see if there were any other adjustments beyond the correction for an underpayment from the earlier year.

    boxelder
    Full Member

    Your 14-15 code is for the bill due by end Jan – so not paid yet and therefore due?

    mudmuncher
    Full Member

    Never got a notice of coding letter as far as I can see, will check if my tax code changed, but assuming it must have because it said on the return the £500 was already added to my 14/15 tax code. They provided the calculation for X based on income and benefits so assume this is correct. Just don’t understand why this £500 is being added on.

    dooosuk
    Free Member

    They provided the calculation for X based on income and benefits so assume this is correct.

    Well X doesn’t take into account the £500 you owed from the previous year, just what you are required to pay based on your 2014-2015 salary and benefits and so they’re adding it on.

    boxelder
    Full Member

    Now to me this means I already paid it,

    No, this means that it wasn’t paid previously and is therefore added to 14/15 calculation (code). Doesn’t explain why it wasn’t collected earlier – increase in earnings 13/14? A capital gain? Dividends?
    Are you doing it online?

    footflaps
    Full Member

    Never got a notice of coding letter as far as I can see,

    Really?

    I get several letters every year and I have one job, PAYE and my Salary hasn’t changed for years….

    mudmuncher
    Full Member

    Well X doesn’t take into account the £500 you owed from the previous year, just what you are required to pay based on your 2014-2015 salary and benefits and so they’re adding it on.

    Yes, but it says they alread collected it in the 2014/15 tax code?

    The £500 is in box 7 on the PDF generated from the online form…
    “Underpaid tax for earlier years included in your
    tax code for 2014–15 – enter the amount shown as
    ‘amount of underpaid tax for earlier years’ from
    your P2, ‘PAYE Coding Notice’”

    No, this means that it wasn’t paid previously and is therefore added to 14/15 calculation (code). Doesn’t explain why it wasn’t collected earlier – increase in earnings 13/14? A capital gain? Dividends?
    Are you doing it online?

    Yes online, I’d assumed when it says added to 14/15 tax code it meas the tax code for last year rather than the calculation, seems very ambiguous if they write code when they mean calculation. They explained it wasn’t collected earlier because I went onto self assessment in 13/14 and they didn’t have time to reflect some changes in the 13/14 return.

    Seems tax code did change for 14/15 year but not mid tax year. Also it seems I was on a M1 emergency code for most of 13/14 if that makes a difference.

    Really?

    I get several letters every year and I have one job, PAYE and my Salary hasn’t changed for years….

    They had my old address as a correspondence address until fairly recently so wasn’t getting coding notices

Viewing 12 posts - 1 through 12 (of 12 total)

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