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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13941
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Filling a SA form for the first time, when I plug in the

Resolved Question:

hi filling a SA form for the first time, when I plug in the details from my P60,Im told I owe money. when I enter the same details on the HM income tax calculator I dont?
Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Income is 138,876.65 Tax code for the full year was 848T tax paid is 45,754
Assistant: Is there anything else the Accountant should be aware of?
Customer: benefit medical 908
Submitted: 24 days ago.
Category: Tax
Expert:  Sam replied 24 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 24 days ago.

HI

Thanks for your patince

The reason you owe money is that when you complete self assessment it calculates the fact you are NOT due any personal allowances as your income is in excess of £100,000 and that's the extra tax you are seen to owe

See link re allowance restrictions on high income https://www.gov.uk/income-tax-rates/income-over-100000

When you put the information into the income tax calculator you use the tax code 848T (which allows you most of the personal allowances without calculating that they arent due)

So the self assessment is correct I am sorry to say

Let me know if I can assist further

Thanks

Sam

Customer: replied 24 days ago.
Thanks for the response, if my tax code was 848T for the entire year and my total income was 139,784 how much
tax should I pay? why did my employee get it wrong?
Customer: replied 24 days ago.
p60 shows income £138,876, TAX £45,754 P11 £908Self assessment looks like...pay from employments £138,876.00
plus benefits and expenses received £908.00
Total income received £139,784.00Total income on which tax is due £139,784.00How we have worked out your income taxAmount Percentage Total
Pay, pensions, profit etc. (UK rate for England, Wales and Northern Ireland)
Basic rate £32,000.00 x 20% £6,400.00
Higher rate £107,784.00 x 40% £43,113.60
Starting rate £0.00 x 0% £0.00
Nil rate £0.00 x 0% £0.00
Total income on which tax has been charged £139,784.00
Income Tax due £49,513.60
minus Tax deducted
From all employments, UK pensions and state benefits £45,755.00
Total tax deducted £45,755.00
Total Income Tax due £3,758.60
Customer: replied 24 days ago.
Maybe answering my own question here! So my tax code should have been 0T, however I had a tax free allowance of £8480 (848T). Should my employer have contacted HMRC when they new my personal allowance would be£0? or is this my responsibility?
Expert:  Sam replied 24 days ago.

HI

No one got it wrong

You just failed to advsie HMRC that your income would be in excess of £100,00 for the year - and I have explained and provided a link advising what that means

I would need more information to work out your tax for you

1) How was the tax code 848T made up - as the personal allowances will be nil and I can see there will be a deduction for medical benefit but there must be something else to consider

2) The calculation as per the self assessment 2016/2017 is correct you can see NIL personal allowances have been awarded which is correct

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 24 days ago.
Ok thanks for your help