I think I have paid too much tax. How much should be paid on the following?
Employment 1:
Pay: £118,656 (£70,000 of which a compromise agreement, so £30,000 is tax free)
Tax: £48,773
Employment 2:
Pay: £30,733
Tax: £12,865
Pension Income:
Pay: £46,354
Tax: £18,586
I think it should have been around £60,682
Replies (32)
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Accountant
No offence - but you look like you can afford a couple of hundred quid for an accountant.
Have you listed all your income ?
And there's one absolutely crucial piece of information missing. What tax year are we talking about ?
Who knows?
What tax year are you talking about? What does your P45?P60 say? What benefits (if any do you/did you have) What other income - savings/dividends etc?
PS A 'please' might elicit a more favourable response - this is not the place for well remunerated folks to demand answers to questions they should take to a professional (and pay for)
Happy Christmas
I agree - pay for an accountant
As a matter of interest does the pension total include the State pension?
How do you know the £30k is tax-free?
Who advised you that it would be tax-free? That same person ought to be able to advise you on your tax liabilities.
what is going on?
I see nothing in the thread above about a tax free payment, but it is refererred to multiple times, have comments been deleted or am i missing something?
Your previous posts
are all asking for free advice. You really should stop and instruct an accountant and pay for the service. We have all spent many years gaining our experience and passing exams. I really do not see why any of us should be expected to give this valuable asset away for free.
PS Have you tried getting free advice from a lawyer ???
Unhelpful forum
Some people on this forum are pathetically unhelpful.
From careful analysis of your figures and information given I can confirm that I could get your tax bill down to zero and get all the tax you've paid refunded to you. Just let me know your UTR, send me £5,000 and then I'll apply my expertise an submit your Tax Return. 100% refund guaranteed.
Probably should also mention that once the Tax Return has been submitted, you're on your own mate.
Very Close
Hey - it's Christmas.
You're very close - provided you've not omitted any information.
Chritmas cheer & goodwill?
Seems to be missing....
Assuming everything you say is correct then somewhere in the region of £60,000 + a few £100s
If however the £30,000 turns out not to be tax free then its up at £74,000
@alberto
£19542 is NOT approximate. It implies a high degree of accuracy. About £19500 is approximate
With those income levels ...
... are you not already filing self-assessment tax returns? If so, just file your 2014 return and any overpayment will be dealt with by HMRC.
Assuming you have included everything, the figure you have put is pretty much there.
It's not uncommon for an employee to be overtaxed after a redundancy payment.
It's all guesswork
I can't make much sense out of the employment 1 tax figure - but given the amount it looks as though the whole £70k has been taxed. If the compromise agreement was drawn up with the employer, and they believed the £30k exemption to apply, why would they tax the full amount? As I say, though, even then the tax looks too high so there must be another reason.
Rough Calculation
Back of a fag packet calculation you've overpaid by £6,000.
I'd happily help you out formally.
Ford
I overpaid once
In America, for petrol. Had to go back and demand a refund as I was working on UK prices not US ones.
This could work for you.
More missing information
A P45 has a date of leaving - unless it was 5th April tax cannot be reconciled. In addition was it used for starting employment 2.
Also, in my experience a compromise agreement is used when you can't agree and reaches the same net effect as if you had reached a redundancy deal which could have had the benefit of a tax free 30k.
I would need to see wording before I would think you might be due the exemption.
Tax free 30,000
Your biggest problem seems to be the 30,000 tax free or not?
Our friends at HMRC have given us EIM12855 and EIM12856 please look at them.