Hi,
Could someone offer some advice on completing self assessment online please? The figures I’m seeing on the system are not what I was expecting so could do with some help before submitting my return.
I’ve had to register for the first time for tax year 16/17 as my taxable income was just over £50k last year and my wife receives child benefit for our daughter. As part of the SA process, I also want to claim some mileage allowance relief.
Details are as follows.
Taxable pay per P60 - £50,141.26
Tax paid £9,317
Tax code on P60 - 1084L
I travelled 7976 business miles in my own car for which my company paid £978.15, which is a rate of 12.3p per mile. I believe this means I can claim 40% relief on 45p – 12.3p.
So 45-12.3 = 32.7
32.7p x 7976 miles = £2608.15
£2608.15 x 40% = £1043.26
No matter what figures I enter in the self assessment forms I don’t seem to land on the above figure. I was expecting the figure to be a little less than the £1043 as there’s a minor adjustment to be made for the child benefit. However on completion of the SA form it says that I have overpaid £1,104.20 in tax which is more than I expected?
I really therefore have two questions –
1. What figure should be entered in the ‘Business travel and subsistence’ expenses section of the self assessment form? I have been entering £2608.15 (which they round up to £2609) as this is my actual ‘outlay’ for travel costs – is this the correct figure to be entering here?
2. As a result of the above expenses, it appears that according to the SA calculation that my taxable income was actually under £50k, and I’m assuming that this is why there’s no mention in the SA calculation of a deduction for Child benefit?
P.S – could interest received impact on this? I’ve entered £460 which I received as gross interest on my Santander 123 account. I don’t see how this means that I’m entitled to a bigger rebate than expected.
The following is from the calculation page on the HMRC SA website – I’m guessing the key question really is whether I’ve got that £2,609 correct for my mileage expenses. Any advice would be greatly appreciated.
Pay from employments £50,141.00
minus allowable expenses £2,609.00
Interest from UK banks, building societies and securities etc £460.00
Total income received £47,992.00
minus Personal Allowance £11,000.00
Total income on which tax is due £36,992.00
How we have worked out your income tax
Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England, Wales and Northern Ireland)
Basic rate £32,000.00 x 20% £6,400.00
Higher rate £4,532.00 x 40% £1,812.80
Savings interest from banks or building societies, securities etc.
Starting rate £0.00 x 0% £0.00
Nil rate £460.00 x 0% £0.00
Total income on which tax has been charged £36,992.00
Income Tax due £8,212.80
minus Tax deducted
From all employments, UK pensions and state benefits £9,317.00
Total tax deducted £9,317.00
Income Tax overpaid £1,104.20
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