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Hi.If you earned a total of £11,264 in 2010/11 and you were under 65 throughout that tax year, you would have been entitled to a personal allowance of £6,475 so your taxable income would have been £4,789. Tax on that at 20% would have been £957.80 and that would have been what you should have paid given that your final tax code looks to have been correct.
You made a loss on your letting in 2010/11 but that loss could not be offset against your other income unless it was from a furnished holiday let.I cannot see how the £1,113.31 repayment relates to 2010/11 and how that fits in. If £194 was refunded through the payroll by your second employer then you would have paid £958 in tax overall (£1,152 deducted by first employer - £194 repaid by second employer through PAYE). That should have left you square.If your self-assessment claimed a tax deduction of £195 or the second job, then you will owe £389 (£195 not actually paid + £194 refunded as a result of the error in your tax return). You are too late to amend the 2010/11 tax return online. Call the tax office on the number here and tell them what you think happened (that you don't think you paid £195 in tax on your second job and that you actually had £194 refunded). The tax office will be able to tell you if that was the case. Normally, when a taxpayer makes an error in a return, HMRC issue a form SA302 which is their calculation of what they think your tax position is. If you didn't get one, ask for one when you call.
I hope this helps but let me know if you have any further questions.
Thanks for your prompt response - however, it's my understanding (and most other landlords I know, including some very experienced ones) that certain expenses relating to rented residential property can be claimed - namely repairs and maintenance (but not an enhancement), professional fees (e.g. legal expenses and management agent), mortgage and insurance and household bills (though that wouldn't apply in most cases) - please see http://www.taxfix.co.uk/forum/articles/allowable-expenses-on-renting-a-house.html and http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf (Property Income, halfway down page 7).
Thank you for clarifying the PAYE aspect of my return - based on this, I've gone over my return again and concluded that I may owe £195.00 being the employer income that was erroneously declared - I have also followed your advice requested form SA302 showing my recalculation, or theirs if they disagree.
I wasn't saying you couldn't claim expenses against your rental income and I have no problem with those figures. I was just making the point that you cannot use the £309 loss against your salary income as a deduction.
Good luck with the tax office.