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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I've just tried to do my online return (I'm paye but earnt

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I've just tried to do my online return (I'm paye but earnt above £100k) and its telling my i owe £4600 tax - can that be right if i'm paye?
Thank you for your question...If you earned over £100k, then you start losing your personal allowance... £1 reduction for every £2 of additional income over the threshold. If your income is £121,000 or above then your allowance will be zero...£10,000 allowance is equivalent to £4,000 tax at 40%.More information on persoanl allowances for income over £100,000 can be found here I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Pay from employments
plus benefits and expenses received
Total from all employments
£121,130.00Total income received£121,130.00Total income on which tax is due£121,130.00How we have worked out your income taxAmountPercentageTotalPay, pensions, profit etc£31,[email protected] 20%£6,373.00£89,[email protected] 40%£35,706.00Total income on which tax has been charged£121,130.00Income Tax charged£42,079.00plusUnderpaid tax for earlier years in your tax code for 2014-15£561.45Income Tax due£42,640.45minus Tax deductedFrom all employments£37,998.00Total tax deducted£37,998.00Total Income Tax due£4,642.45Estimated payment due by 31 January 2016You must pay the total of any tax and class 4 NIC due for 2014-15 plus first payment on account due for 2015-16 by 31 January 2016.2014-15 balancing payment£4,642.451st payment on account for 2015-16 due 31 January 2016
(Note: 2nd payment of £0.00 due 31 July 2016)
£0.00Total due by 31 January 2016£4,642.45This amount does not take into account any 2014-15 payments on account you may have already madeThis is what my return is saying - does it look correct then? and what do i do as i definitely wasn't expecting a £4k bill - do i just need to ring HMRC and try to negotiate a payment scale? thanks
I thank you fo raccepting my answer. best wishes