Quick Self Assessment + PAYE Tax Code query for second job

Whippet

Whippet

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Tom
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Hi,

The answer is probably simple but I'm a complete idiot when it comes to tax. So at the risk of looking stupid...

I have a main job for which I pay PAYE tax and I have a code of 1038L so I am not taxed on the first £10380.

I have a minor second income so I have to complete a self assessment. When I come to do this the calculations take the standard personal allowance of £10,000 from my total earnings rather than £10380 which means I have to pay tax on another £380 from my main income as well as the tax on my second income.
It seems odd that due to completing self-assessment I pay more tax on my main job than I would have done otherwise.
Am I missing something?
 
Is the calculation just using the 2014 / 2015 allowance?
 
Just struggling to understand why it works out that I owe more tax when looking at self assessment as opposed to PAYE and that's without my extra income being taken into consideration.
 
Whippet said:
Just struggling to understand why it works out that I owe more tax when looking at self assessment as opposed to PAYE and that's without my extra income being taken into consideration.
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Were you born before 5 April 1948? And does the extra income, take you over £27000?
 
KitsuneAndy said:
Were you born before 5 April 1948? And does the extra income, take you over £27000?
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Born between 6 April 1938 and 5 April 1948
Income Personal Allowance
£0 to £26,999 - £10,500
£27,000 to £27,999 Between £10,500 and £10,000 - your allowance (£10,500) goes down by £1 for every £2 that your adjusted net income is over £27,000
£28,000 to £100,000 - £10,000

Born before 6 April 1938
Income Personal Allowance
£0 to £26,999 - £10,660
£27,000 to £28,319 Between £10,660 and £10,000 - your allowance (£10,660) goes down by £1 for every £2 that your adjusted net income is over £27,000
£28,320 to £100,000 - £10,000
 
Wht are you using the figure of £10000? you do not say where that has come from?.If you are just reading a standard self assessment form it does not know you already have a certified tax code from the tax office.You just use the tax office £10380 one.
 
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It's the online assessment. No not born before then 1948. My total income takes me over £27k.

It's for 2014-15 so the personal tax allowance is £10,000. This is standard for everyone born post 1948.

So for example on a taxable income of £35k using PAYE I have been paying 20% tax on £24,620. (£35k - £10,380). But using self assessment it calculates that I should have paid 20% tax on £25,000 (£35k - £10k). And that's before I have to pay tax on my second income.
 
Have you overpaid tax in the past and that's why your allowance is £10380 instead of £10000?
 
I'm not 100% sure but it may have to do with being able to claim tax relief on professional subscriptions and uniform.
 
Ask your employer to explain your tax code, there are a lot of things that can alter it.
 
Will do but that won't make self assessment pay any attention to it as the self assessment process doesn't use tax codes
 
Whippet said:
Will do but that won't make self assessment pay any attention to it as the self assessment process doesn't use tax codes
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But it will tell you what you need to add to your return that your employers is doing automatically. It probably is the uniform and subscriptions, your employer knows what HMRC needs to be told.

Or, you could just ring HMRC. They are very helpful. Worst case is about £75 extra tax (rough mental arithmetic) this year and sort it with HMRC next year (with 12 months to get the right answer).
 
Alastair said:
Or, you could just ring HMRC.
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:ROFLMAO:

Good advice................just depends how much time you've got to spare & if you actually get to speak to someone with experience, rather than `call handlers`.
 
OldCarlos said:
:ROFLMAO:

Good advice................just depends how much time you've got to spare & if you actually get to speak to someone with experience, rather than `call handlers`.
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Well.. ringing this week is probably leaving things far too late. It's not as if there hasn't been eight months since the tax year ended to have identified and resolved a problem...

Having said that... must get back to filling in the last details on my own assessment!
 
Alastair said:
Well.. ringing this week is probably leaving things far too late. It's not as if there hasn't been eight months since the tax year ended to have identified and resolved a problem...

Having said that... must get back to filling in the last details on my own assessment!
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Yeah, it's getting a bit late if there's something not quite right tbh.

I have a man that comes to my home & does it all for me. :cool:
 
OldCarlos said:
I have a man that comes to my home & does it all for me. :cool:
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VAT returns mean I've always got the bulk of it done in advance, and it's a rare month I have more than five invoices to record. But I create a rod for my own back leaving collating mileage to an annual mad rush!
 
KitsuneAndy said:
This looks like it might cover the scenario:

http://www.accountingweb.co.uk/anyanswers/question/changed-tax-code-tax-return

Sounds like you need to put the "employment expenses" in your tax return, which won't impact your tax code, but will get knocked off your earnings and therefore the net tax will then be correct.
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Alastair said:
But it will tell you what you need to add to your return that your employers is doing automatically. It probably is the uniform and subscriptions, your employer knows what HMRC needs to be told.

Or, you could just ring HMRC. They are very helpful. Worst case is about £75 extra tax (rough mental arithmetic) this year and sort it with HMRC next year (with 12 months to get the right answer).
Click to expand...


Ok that seems to make sense, I need to add somewhere in the self assessment what tax relief I am entitled to that would otherwise be covered via PAYE.

Thank you for the pointers, will try again.
 
What does your P60 say?
 
Sorted it by adding professional subs and flat rate uniform allowance under my main employment.
The page where you enter it isn't there by default.
Turns out to be fairly simple in the end, just a brain failure and a lack of understanding of terminology at my end.
Thanks all for guidance
 
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