Tax calculation seems random...

[cwodavids]

I have just looked at my Self Assessment tax calculation as a 20% tax payer and I am due a rebate of £1191 but I think this is incorrect....

I have 2 residential properties and recently started my own part-time business.

My calculations were as follows

Main employment

Income = £9250
Expenses = £7085
Losses to carry over from 16/17 = £21,648
adjusted profit for 17/18 = 0

Part-time self employment

Income = £0
Expenses = £3967

Using very simple maths

total profit £0 - outstanding expenses £3,967 = -£3967
= £793 @ 20% tax rate
= £1586 @ 40% tax rate

How does HMRC get to £1191?!?

[bd6759]

Very simple maths:

Tax paid = £nil

Potential refund of tax paid = £nil

[AdamS93]

Jeez,

You need an accountant.

Are you aware of the recent changes to tax relief for mortgage interest?

You have not paid any tax so how on earth will you get a rebate?

[cwodavids]

I have paid tax on my employment income which is separate to my property income but all declared on my tax return.

I am aware of the 75% tax relief on mortgages.

The rebate is directly from my tax return and has been calculated by HMRC, not me.

[robbob]

To comment on tax calculations we need the full details of that calculation - so you would need to post salary details and tax deducted at source

[cwodavids]

I got to the bottom of it after a call with HMRC, thanks for everyones help.