Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.
Can you tell me what your gross pay and tax deducted figures were for 2015/16 please. What was your tax code for 2015/16? The current tax code for 2016/17 is not relevant.
Let me take a look at those figures.
Did you make any personal pension contributuions? Are there any entries other than your pay and tax in the tax return? Your tax code of 1260L was much higher than the regular basic tax code of £1,060L.
How much was the car benefit for one month? Your P11D should give you that figure.
It would have to be some car for a one month benefit of £3,888.
Your income was over £100,000 for 2015/16 so have lost £8,355 of your personal allowance (you lose £1 of the personal allowance for every £2 of income over £100,000). That gives me a tax underpayment of £ £4,894.
Your tax code was 1260L. A regular tax code was 1,060L for 2015/16 which means you had excess allowances of an extra £2,000 (pension contributions?) which has made the underpayment larger than it would otherwise be.
As a high earner, you need to decide before the start of a tax year whether you think you will have an income over £100,000 and, if so, whether to forego all or part of the personal allowance for the year ahead. If you did that and too much of your personal allowance was taken away, you would be overpaid for the year and due a tax repayment assuming your tax code was otherwise correct as far as benefits was concerned.