eek - Tax help, something is surely wrong

[edgeofreason]

Ok,

So I am a total novice, thank you for knowing this!

I have always paid via PAYE, nice and simple but recently got a SA notification from HMRC as last year was rather irregular

I started off the year employed, PAYE and received a pretty big bonus, then throughout the next few months earned a lot less than i did in that first month.

Following a company takeover I left the company in November 2010 and was unemployed (although not registered) until May 2011, so no earnings in that time. So, I was only employed from April 2010 - Nov 2010 for the figures below.

I think that for this reason my calculations on what I should have paid are very different from what I did actually pay;

My final payslip (Nov 2011) states the following amounts, which I will enter onto my return

Taxable Pay - 117,133.05
Tax - £41,419.83
NIC Ees - 3,454.24
NIC Ers - 14,505
Pension - £1430

From this I calculate I have overpaid Tax by around 2k, but total NIC by about £12k!!

Surely this cannot be possible???

Any help or explanation on why this might be would be hugely welcomed. Also - comments on how/if the overpay can be claimed or automatically returned after submission of SA return.

Thanks so much

Matt

[King_Maker]

Are you including your employer's NIC of £14,505 in your calculations?

If so, it's not relevant.

[edgeofreason]

is that what the Ers amount is? Sorry - I had no idea

[robbob]

My final payslip (Nov 2011)

Presumably you mean 2010

From this I calculate I have overpaid Tax by around 2k, but total NIC by about £12k!!

The tax sounds approximately correct (depends on the deductability of the pension payments)
I have no idea where you got the 12k NI rebate calculation from

employees/ers NIC isn't anything to do with your tax return - it is deducted by employers as appropriate and will normally be correct unless you have multi employments during the year or if you you were a director and they didn't register this fact on your payroll record.

Basically the 14k employers NI is simply a tax payable by your employer - you will not have had this amount deducted from your gross salary (unless there has been a serious error made.) - this amount is not really relevant to your tax affairs at all.

Pension - £1430

You will need to check to see what kind of pension payments you have made to decide if they go on the tax return.
If they are paid direct by you or are deducted from your net pay then there will be grossed up and included on the tax return - the amount paid into the pension scheme will have the 205 tax relief included at source.
If payments are deducted from gross pay by employer thereby reducing "taxable pay" then you have already had the benefit of the tax relief so the payments will not be included on your tax return.

[nikkisizer]

Hi Matt,

If your annual income is £100,000 or more you do need to complete a tax return which is why you have received the SA notification from HMRC.

The deadline to file your tax return for 2010/2011 is 31 January 2012 so you still have some time but you will need to provide HMRC with the tax calculation of what your tax liability should have been for that tax year.

If the result is that you have paid too much tax then HMRC will refund it to you directly, good luck with that!

Please do not hesitate to contact me if you need any further help.