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bigduckontax, Accountant
Category: Tax
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I filled in a self assessment last year, so I need to complete

Customer Question

I filled in a self assessment last year, so I need to complete one this year. i give money to charity about £1000 this does not appear to be shown when I received my PAYE coding notice this week.
This is how you worked out my tax code; your personal allowancce £10660S
state/pension benefits -£11784
interest without tax taken off (gross interest) --------------£9 £11874
Tax is due on-£1214
Tax ref; 428/U168 National insurance number LT 166349 C
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
As far as you are concerned charitable donations do not actually come into your Income Tax computation, well they do, but they are removed again at the end on the HMRC system. The donation will not affect your code number. The only beneficiaries are the charity who can reclaim the tax originally paid ie deducted by you.
Assuming that the tax office's calculation of your State Pension is correct and this should be checked for tax office staff are notorious for getting this wrong (they did for me for over 20 years), then the position would appear to be correct and you have a negative tax code; a not unusual situation. Here is the Gov UK's advice on the subject:
Negative numbers on your PAYE Coding Notice
Negative numbers are income that you haven’t paid tax on, but the tax will be collected by your employer or pension provider before they pay you.
They include things like:
Benefits from your job that you need to pay tax on
State benefits (including the State Pension) that you’re getting but need to pay tax on
Tax you owe from previous years that you’re paying through your employer or pension provider'
Finally a word of warning; Just Answer is a public forum and it is inadvisable to include personal details like your tax reference and NI number in your question. Having said that I do hope I have been able to assist you. On the face of it HMRC's approach appears to be correct.