Sparkler - scenario 1 is based on 2010/11 employment expenses ( £580) - claimed on P87 form. HMRC instead of refunding overpaid tax ( by cheque, Bacs) changed tax code of 2011/12.
There was an adjustment made by HMRC as last year ( 2010/11) there were some employment expenses claimed on P87 form and instead of refunding the tax overpaid HMRC adjusted the tax code for 2011/12.
Kent - you are right - I am short by £116 as I do not know where to put that new personal allowance. HMRC online tool assumes it is £7475. I think I need to give them a call...
I might be doing something wrong, please correct me if my thinking is not right.
Tax return for the year 2011/12. Tax code to use 805L, personal allowance £8055 ( as per letter from HMRC).
Employment income £23113, tax decucted £3011 ( details per P60)
Employment expenses that I need to put on tax return £4018.
Per HMRC calculation ( as it uses personal allowance £7475) tax overpaid £687. I think it shall be £803. Am I silly? If not the question is where can I adjust the tax code?
The only income I need to declare is an employemnt income, however I have to deduct employment expenses. The correct amount of tax was deducted from the employment income ( for the 805L tax code) but when I declare the expenses it is all worked out for £7475 personal allowance:(
My answers
Sparkler - scenario 1 is based on 2010/11 employment expenses ( £580) - claimed on P87 form. HMRC instead of refunding overpaid tax ( by cheque, Bacs) changed tax code of 2011/12.
Scenario 1:
Tax return 2011/12. Tax code 805L, there are not expenses to claim.
Employment income £23113, tax decucted £3011 - That's correct - right?
Scenario 2:
Tax return 2011/12. Tax code 747L. Current year expenses to claim £4018.
£23113 - £7475 - £4018= £11620 - tax to pay £2324
If I put these two together and get scenario 3:
Tax return 2011/12, tax code 805L, Current year expenses to claim £4018
£23113 - £8055 - £4018 = £11040, tax to pay £2208
Why is that wrong?
I am sorry Peter - I do not agree. There is no underpayment.
The 2010/11 tax was overpaid and as a result 2011/12 personal allowance was increased.
There was an adjustment made by HMRC as last year ( 2010/11) there were some employment expenses claimed on P87 form and instead of refunding the tax overpaid HMRC adjusted the tax code for 2011/12.
Kent - you are right - I am short by £116 as I do not know where to put that new personal allowance. HMRC online tool assumes it is £7475. I think I need to give them a call...
I might be doing something wrong, please correct me if my thinking is not right.
Tax return for the year 2011/12. Tax code to use 805L, personal allowance £8055 ( as per letter from HMRC).
Employment income £23113, tax decucted £3011 ( details per P60)
Employment expenses that I need to put on tax return £4018.
Per HMRC calculation ( as it uses personal allowance £7475) tax overpaid £687. I think it shall be £803. Am I silly? If not the question is where can I adjust the tax code?
The only income I need to declare is an employemnt income, however I have to deduct employment expenses. The correct amount of tax was deducted from the employment income ( for the 805L tax code) but when I declare the expenses it is all worked out for £7475 personal allowance:(
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were there any transactions in April?
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