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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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This section provides you with a breakdown of your full calculation. If it says your tax return is 100% complete then you have submitted your return and this is a copy of the information held on your official online Self Assessment tax account with HM Revenue and Customs.Pay from employments£105,677.00plus benefits and expenses received£15,453.00Total from all employments£121,130.00Total income received£121,130.00Total income on which tax is due£121,130.00How we have worked out your income taxAmountPercentageTotalPay, pensions, profit etc£31,865.00@ 20%£6,373.00£89,265.00@ 40%£35,706.00Total income on which tax has been charged£121,130.00Income Tax charged£42,079.00plusUnderpaid tax for earlier years in your tax code for 2014-15£561.45Income Tax due£42,640.45minus Tax deductedFrom all employments£37,998.00Total tax deducted£37,998.00Total Income Tax due£4,642.45Estimated payment due by 31 January 2016You must pay the total of any tax and class 4 NIC due for 2014-15 plus first payment on account due for 2015-16 by 31 January 2016.2014-15 balancing payment£4,642.451st payment on account for 2015-16 due 31 January 2016
(Note: 2nd payment of £0.00 due 31 July 2016)
£0.00Total due by 31 January 2016£4,642.45This amount does not take into account any 2014-15 payments on account you may have already made
Sorry - not sure if you got my last question - does this look correct then? and i wasn't banking on a £4k bill so don#t have that sort of money, do i ring HMRC and try to negotiate a payment plan? thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your post can you advsie what your question is?
Thanks
Sam
Customer: replied 1 year ago.
Sorry - I'd spoken to someone previously and tried to send this to him - first time user! I have just started to complete my online tax return and its showing that I owe £4600 in tax - I'm PAYE and wasn't expecting a tax bill so surprised to say the least. My earnings were £105k approx, I've paid £just under £38k tax and my benefits come to approx £15k - does the tax bill look correct? Also i'm not in a situation to pay it, do I contact HMRC to try and negotiate a payment plan?
Expert:  Sam replied 1 year ago.
Hi
Thants not a problem!
Yes the bill would be correct IF you had been given the benefit of personal tax allowances throughout the year (operated from your tax code number 10000 allowances) which then would be reduced to NIL due to the high level of your income (any income in excess of £100,000 sees the allowance reduced by £1 for every excess of £2)
Is this possible?
Thanks
Sam
Customer: replied 1 year ago.
HI SamI think so, my tax code was K622, which my coding notice says is made up of:
Personal Allowance £10317
Car/Fuel/Medical Insurance benefits of -£16548, giving me tax due on -£6231 (code of K622).Guess I've learnt a lesson today to potentially expect a future tax bill! Are they likely to be relatively flexible in organising the repayment of the money? thanks
Expert:  Sam replied 1 year ago.
Hi Thanks for your response There you are then - its the £10000 allowances that are no longer due x 40% = £4000 that accounts for most of the underpayment arising.The other £600 may be due to increase of taxable benefits maybe (compare what was in your 2014/2015 code and what qs on the P11d. Re the tax owed - HMRC will be happy to negotiate a payment plan - if you can offer them a reasonable one off lump sum and then propose a payment plan as short a time as possible then they will be happy to accept this. Just note that the late payment will see interest being charged (around 1.5%) Then just check that if your income will continues to be in excess of £100K (so income plus benefits) then jet the tax code amended for this year 2015/2016 to remove the personal allowance (so this too will create an underpayment) and also when you get the 2016/2017 tax code (issued Jan/Fen 2016) again make sure this also has the personal allowances are taken out. But your situation is one that sadly creeps on on individuals with the £100K income threshold. Let me know if I can assist further - if not it would so much be appreciated if you could rate (or click accept) for the level of service I have provided. Thanks Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Customer: replied 1 year ago.
That makes sense, thanks very much for your help.

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