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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4970
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There I've just been completing my yearly tax return and

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Hi there I've just been completing my yearly tax return and have put through overall income as £53,000. My expenses as £7500 and the cost of paying subcontractors as £15000. Why is my calculation saying i'm owed £4300?? I don't want to submit this as why are they paying me this money?
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I am as confused as you! 53K - 7.5K - 15K = 30.5K. Deduct your Personal Allowance of 10K leaves 20.6K taxable at 20% so total tax due is 4.1K. It is always possible that HMRC owes you from earlier years, unlikely, or alternatively you have put your figures in the wrong boxes. I would suggest clearing everything and try again. If you still get the same answer then just roll over and accept the position, but put the refunded 4.3K in a safe place eg Premium Bonds, you might win a prize, for pound to a pinch of salt HMRC will ask for it back, not to mention the 4.1K actually due. Personally, I prefer the paper return and avoid HMRC on line systems like the plague. I do hope that I have shown you a way forward with your problem.
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Customer: replied 2 years ago.
Thanks for your answer Keith. I have just cleared the boxes and have entered again.The 52k has been place in the 'turnover section' with the 7.5k expenses in the 'total allowable expenses' which is 2 boxes below. Immediately below that it tells me my net profit which is £44,500Then skipping through the sections i come to the 'deductions on payment-deductions for contractors' where i have paid out the £15k during that year on them.And as before the amount payable to me is £4468??
If you paid your contractors net of tax, you might have to do that if you were in the building industry using CIS, then this probably where it has all gone wrong. If you were paying your contractors in full then then this sum (15K) should have been entered as part of your allowable expenses. Have another go and I think we will have got to the bottom of the situation Thank you for your support. If you wish to follow up some more please note that I am answering you from a time zone 7 hours ahead of GMT so I am just going to bed, but will respond in the morning.
Customer: replied 2 years ago.
Ah yes it was me filling it in wrong! Now it seems i owe them quite an amount. thanks for the advice, Richard
Delighted to have been of assistance, Richard.