Self assement difference?

[dave p]

Please can you tell me whats wrong with the following 2010-11 SA calculation :


£
Income from employment____________ £10,500
BIK_______________________________ £15,000
interest______________________________£ 10
divis_____________________________ £ 25,000
less PA____________________________ £(6,475)
________________________________--------------
taxable income _____________________£44,035
________________________________==========

Tax
Pay & BIK __________£19,025 @ 20%______£ 3,588
int____________________£ 10@ 20%_________ £ 2
divis_____________ £18,365@ 10%_______£ 1,836

divis_______________£6,635@ 32.5%_______£2,156
________________________________ ---------------
Income tax charged_________________ £ 7,582
less tax credit____________________ £ (2,533)
________________________________ ----------------
Income tax due_____________________ £5,049

Less tax already paid
int___________________________________ £ (2)
PAYE______________________________ £ (3,000)
____________________________________-------------
Tax now due__________________________ £2,047

[pjclar02]

I can't work back to this figure.....

"less tax credit____________________ £ (2,533)"

[section 44]

Have you grossed-up the dividend received by one ninth?

[dave p]

sorry, tax credit should be 2,500 (not £2,533) being 10% of the gross £25k divi.

In my original post I intended to ask where my error was on the following (sorry, for the typo in my original post on the divi tax credit):

£
Income from employment____________ £10,500
BIK_______________________________ £15,000
interest______________________________£ 10
divis_____________________________ £ 25,000
less PA____________________________ £(6,475)
________________________________--------------
taxable income _____________________£44,035
________________________________==========

Tax
Pay & BIK __________£19,025 @ 20%______£ 3,588
int____________________£ 10@ 20%_________ £ 2
divis_____________ £18,365@ 10%_______£ 1,836

divis_______________£6,635@ 32.5%_______£2,156
________________________________ ---------------
Income tax charged_________________ £ 7,582
less 10% tax credit____________________ £ (2,500)
________________________________ ----------------
Income tax due_____________________ £5,083

Less tax already paid
int___________________________________ £ (2)
PAYE______________________________ £ (3,000)
____________________________________-------------
Tax now due__________________________ £2,081

When I enter these details to HMRC online it comes back with a higher tax due figure? Of about £200? But I can'e see why?

[pjclar02]

Are these trick questions....!!

£19,025 * 20% = £3,805, which is £217 higher than the £3,588 you state below.....

Does this solve it?

[dave p]

Thanks for your reply, the error in my example was newly introduced by me in rushing to post modified figures in this thread. In the actual comp the 20% calculation on tax was multiplied through correctly without this difference. That said your review of the computation suggests there should be no error (other than the ones I introduced in posting the thread, again apologies for this). Thanks for your help. Dave P.

[section 44]

sorry, tax credit should be 2,500 (not £2,533) being 10% of the gross £25k divi.

No.

Have you grossed-up the dividend received by one ninth?

One ninth, not 10%.

[robbob]

This is all getting a little bit confusing now (unless i am being thick)

section 44
Re your last post - I not not 100% convinced the OP has this wrong, as the figures are shown in a "tax comp" format it looks like he has quoted the divis already grossed up to the 25k in which case the £2,500 notional tax credit would be correct.

To clarify the position i think Op needs to confirm whether the net dividend received figures was £22500 - in which case 25k Gross and 2,500 tax credit would be correct.
Can you please confirm whether this is the case OP - thank you