Help on Self Assessment Calculation - Community Forum (2024)

It's my first year completing an SA, after doing a lot of reading i thought i was prepared... i guess not.I have a single employer with all earnings (apart from £398 interest) via PAYE. My earnings from employer were £105,094.10 with £29,441.60 tax deducted, according to my 22-23 P60. But after adding these details into SA i am asked to pay an additional £2,999.80 which i cannot figure out and any assistance would be greatly appreciated! Given i earn almost soley via PAYE i thought it was going be mostly accurate.

Hi J,
As your income is over £100,000 you are not due full personal allowances. See guidance at Income Tax rates and Personal Allowances. If you received the full personal allowance in your tax code then this would cause an underpayment of tax. As this would not come to £2999.80 then we would need to review the calculation for the difference. If you submit the Self Assessment and allow 3 working days to process to HMRC records and then contact us we can check the calculation. Self Assessment: general enquiries.
Thank you.

Hi, sorry to reply on this thread. New here and cannot figure out how to post new thread here. I have similar issue with income less than £50k per annum. Single employer all earnings via PAYE. I noticed after adding my rental income in Self assessment form, income tax is again calculated on my employment income too. This cannot be right.Please help.

PAYE is a fairly simple system compared to the overall complexity of tax, and it doesn't by itself understand or take account of the reduced personal allowance for income over £100k. As a result, if you earn over £100k in a year, and your tax code hasn't been adjusted in advance based on an estimate of how much your personal allowance will be reduced, PAYE can substantially under-charge you, leaving you with a bill to make up at the end of the year. But a quick bit of tinkering in a spreadsheet suggests your numbers ought to come out to something like £1,126.46 extra, not £2,999.80. Hope you managed to get an explanation from someone who could see your full calculation! @fleeting glimpse: The "Create a new thread" form is literally on the front page of the forum... https://community.hmrc.gov.uk/customerforums/sa . Your issue does not sound similar. What you are seeing sounds normal and correct. Think of it this way: PAYE / tax codes are a tool to spread out paying roughly the right amount of tax over the year. At the end of the year, the Self Assessment looks back over what actually happened in the entire year, and fixes up the amount of tax in cases where PAYE didn't cover all the details. Your Self Assessment includes your employment income because it happened in the year - but it also includes (or should) the "tax paid" number from your P60 or P45, giving you credit for what has already been deducted via PAYE.

Hi
The self assessment calculation is a breakdown of your world-wide income, as declared in the tax return. Your employment income plus your net property income are added together to work out how much tax is payable and a credit for the tax deducted by your employer is subtracted from the calculated tax due. This may result in an overpayment or an underpayment. You are not being taxed a second time on your employment income.

thanks for coming back to me and for the explanation. Interestingly I contacted SA via live chat, they advised student finance had placed a ~£1800 charge via SA and I should call Student finance to find why. I called Student finance, who told me they have no idea why and that HMRC are responsible for collecting payment and the correct percentage of salary for payment so I should ask them. Back to the SA live chat and the advisor said the HMRC student loans department had miraculously removed the additional charge (I asked for a reason but they did not give one) and that an updated Income tax amount will be sent via post within 3 weeks. It's all a little strange, I was paying Student load via PAYE until Feb 23, before moving to direct debit payment as I was nearing the end of paying the remaining Student loan balance