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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Ijust did a self assessment for the year ending april 2016

Resolved Question:

ijust did a self assessment for the year ending april 2016 and im taxed at source but when I put my figures in it says I owe 5k.im on code 1260l? surely I shouldn't owe anything?
thers no other stuff that needs adding etc.
Submitted: 10 months ago.
Category: Tax
Expert:  TonyTax replied 10 months ago.

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.

Expert:  TonyTax replied 10 months ago.

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.

Customer: replied 10 months ago.
114839.07 income
34534.60 taxfinal tax code 1260l
Expert:  TonyTax replied 10 months ago.

Thanks.

Let me take a look at those figures.

Expert:  TonyTax replied 10 months ago.

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.

Customer: replied 10 months ago.
ther was a company car which I first got on 15/3/2016 so paid one month at 3388.00 AND MEDICAL INSURANCE OF 1483.86 FOR THE YEAR .NO PENSION payments
Expert:  TonyTax replied 10 months ago.

Thanks.

How much was the car benefit for one month? Your P11D should give you that figure.

Customer: replied 10 months ago.
sorry was 388 not 3388. that was a typo error. on the p11d it says 388
Expert:  TonyTax replied 10 months ago.

Thanks.

It would have to be some car for a one month benefit of £3,888.

Customer: replied 10 months ago.
ha
Expert:  TonyTax replied 10 months ago.

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.

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