Self Assessment

by **TIMONLINE** on Wed Jan 04, 2012 9:26 pm

In Feb 2010 I had a tax code of K491. In Jun 2011 I had a tax code of 569L but hadn't repaid any additional tax. Could this have arisen because I didn't declare underpayment of tax on my 2009/2010 tax return? I'm just about to submit my 2010/2011 tax return and appear to be due back about £2K because of overpaid tax but I don't think this can be right.

by **nikkisizer** on Thu Jan 05, 2012 9:38 am

Hi TIMONLINE,

The personal allowance for 2009/2010 & 2010/2011 was £6,475 the current tax year 2011/2012 is £7,475. As the tax codes issued to you for all years mentioned are below the personal allowance it does appear that HMRC are collecting underpaid tax through your coding.

If when completing your tax return for 2010/2011 you have not taken into account underpaid tax owing from previous years then yes, it would look like you have overpaid tax in 2010/2011 which would not be a true reflection of your current tax position.

If you need any further assistance with this then I am happy to help so please do not hesitate to contact me.

by **TIMONLINE** on Thu Jan 05, 2012 11:37 am

According to a statement received from HMRC in June I don't owe any tax - but could that due to the fact that I didn't declare any outstanding underpayments in my 10/11 tax return? If it my responsibility to keep a track of how much I owe even if through my tax code) or that of HMRC?

by **nikkisizer** on Thu Jan 05, 2012 1:29 pm

Yes possibly and yes it is your responsibility to keep track of your tax affairs but how did the underpayment arise in the first place, were you self employed? Are you employed or self employed currently?

by **TIMONLINE** on Thu Jan 05, 2012 4:18 pm

I'm employed by my own company - I guess my company didn't deduct sufficient tax at the time.

by **TIMONLINE** on Thu Jan 05, 2012 4:27 pm

So if I have a K tax code is it my responsbility to declare that on my SA form as outstanding tax even though HMRC havn't notified me that I still have outstanding tax to pay?

by **mullet** on Thu Jan 05, 2012 8:03 pm

So if I have a K tax code is it my responsbility to declare that on my SA form as outstanding tax even though HMRC havn't notified me that I still have outstanding tax to pay?

You have to declare the following via self assessment:

- Gross pay
- Tax deducted
- Expenses & benefits etc
- Any underpayment from the previous year carried forward to that year's tax code (which increases your bill)
- Any underpayment from that year carried forward to the following year's tax code (which reduces your bill)

You don't actually declare the K code on your tax return. The PAYE system only deducts tax on account of that year's final liability. For most PAYE taxpayers the amount is spot on, but for some there will be under or overpayments.