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Where Taxpayers and Advisers Meet

Correct Tax paid figure?

JohnX
Posts:3
Joined:Sat Jul 14, 2018 8:59 am
Correct Tax paid figure?

Postby JohnX » Sat Jul 14, 2018 9:04 am

Hi everyone,
I am trying to work out how much tax I should have paid on the year 2017/18 and was hoping somebody could help check it for me please? I use self-assessment, but I am not sure the figure is correct / I have entered it into the wrong field for the one-off payment into my pension.
For 2017/18 I earnt £107435.93 (figure from my P60) and my final tax code was 1159L.
I receive at 20% relief at source through payroll for my pension so usually claim back the additional 20% relief via the tax return. The amount deducted via payroll net was £4183.51. However, this is the first time I have gone over £100k so my tax code remained the same throughout the year, but I also made an extra pension payment so as not to be stung for the 60% tax by starting losing my personal allowance.
On 4th April 2018 I paid a net one off payment direct into my pension of £5950. I have seen that my pension has received £1487.50 tax relief (20%).
Bank interest was only £18.

To summarise:
2017/2018 total income received £107453
Final tax code 1159L
Net Pension payment via relief at source through payroll £4183.81
Net one-off payment direct to pension provider £5950

Please could somebody help me out?

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Correct Tax paid figure?

Postby AdamS93 » Sat Jul 14, 2018 10:01 am

you need to gross up the pension contributions by 100/80 to get the gross amount.

So in the box for contributions made to a pension scheme you should put (5950 + 4183.81) x 100/80 = £12,668

On the employment pages you will put your salary of £107k and the tax deducted from your P60 along with the PAYE reference which will also be on your P60.

With a salary that high, I would be surprised if you didn't have any taxable benefits such as a company car/fuel and medical insurance which you will also need to declare - ask for your p11d from your employer.

If it is just your salary of £107K and the pension contributions then you should be in for a refund as you will keep your personal allowance and your basic rate band will be extended.

The tax code is irrelevant for completing your self-assessment - your employer uses it to work out how much PAYE to deduct.

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: Correct Tax paid figure?

Postby someone » Sat Jul 14, 2018 5:07 pm

With a salary that high, I would be surprised if you didn't have any taxable benefits such as a company car/fuel and medical insurance which you will also need to declare - ask for your p11d from your employer.
Employers seem to be moving to a model where the taxable benefit (of medical at least) is included in your taxable pay each month. I don't get any other BIK. (Although season ticket loans, cycle to work etc, are bound to lose their tax free status for high earners soon)

So my p11d has something like Medical 800. Amount made good 800. Net benefit 0

I'm not absolutely sure whether I have to fill in the BIK pages but enter zeros or I can say 'no BIK' and not get the pages to fill in at all. (I've said no BIK but haven't submited yet)

HMRC helpline is worse than useless - submit the form and then call us and we'll tell you if it agrees with the information we have - although I was calling about whether refundancy that appears on the p45 goes in the box 'amount on your p45' or has to be subtracted from there and entered on the 'other payments' pages. (Obviously it doesn't affect the tax due in either case)

My previous employer didn't give me a p11d at all. So last year it didn't occur to me to fill in the BIK pages. This year I have a zero p11d for half a year and no p11d for the other half.

JohnX
Posts:3
Joined:Sat Jul 14, 2018 8:59 am

Re: Correct Tax paid figure?

Postby JohnX » Sun Oct 21, 2018 3:56 am

you need to gross up the pension contributions by 100/80 to get the gross amount.

So in the box for contributions made to a pension scheme you should put (5950 + 4183.81) x 100/80 = £12,668

On the employment pages you will put your salary of £107k and the tax deducted from your P60 along with the PAYE reference which will also be on your P60.

With a salary that high, I would be surprised if you didn't have any taxable benefits such as a company car/fuel and medical insurance which you will also need to declare - ask for your p11d from your employer.

If it is just your salary of £107K and the pension contributions then you should be in for a refund as you will keep your personal allowance and your basic rate band will be extended.

The tax code is irrelevant for completing your self-assessment - your employer uses it to work out how much PAYE to deduct.
Hi AdamS93,

Thanks for the reply, sorry I haven't come back sooner, I had originally submitted my post back in May and it obviously didn't get approval till July so I thought it wasn't going to materialise.
I will now put the £12668 in the box for my pension contributions so as to be able to obtain an additional 20% tax relief back on my contributions. I do have a company vehicle but that is added to my wages for tax purposes each month. My real earnings were circa £102k and the car benefit added as if earnings accounted for just over £5k.
So if I am correct my personal allowance will increase in line with the extra 20% relief on the £12668 and it achieves what I set out to do - keeping my full personal allowance and I am due a refund of £2533.60.

Thank you again. :)

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Correct Tax paid figure?

Postby robbob » Mon Oct 22, 2018 10:31 am

So if I am correct my personal allowance will increase in line with the extra 20% relief on the £12668 and it achieves what I set out to do - keeping my full personal allowance
You personal allowance will be restored in full and your basic rate band extended by the 12668
and I am due a refund of £2533.60.
For 2017/18 I earnt £107435.93 (figure from my P60) and my final tax code was 1159L.
Yes if your tax code collected the correct amount of tax at source and had no adjustments in the code for pension relief and no other adjustments taht would affect the calculations, note now you are claiming pension relief hmrc will alter your current year tax code to give you relief now based on the ye 5/4/18 total - that can create later tax bills if you pay less into your pension this year than the amount they have adjusted for on your tax code!

JohnX
Posts:3
Joined:Sat Jul 14, 2018 8:59 am

Re: Correct Tax paid figure?

Postby JohnX » Wed Oct 24, 2018 3:30 pm

So if I am correct my personal allowance will increase in line with the extra 20% relief on the £12668 and it achieves what I set out to do - keeping my full personal allowance
You personal allowance will be restored in full and your basic rate band extended by the 12668
and I am due a refund of £2533.60.
For 2017/18 I earnt £107435.93 (figure from my P60) and my final tax code was 1159L.
Yes if your tax code collected the correct amount of tax at source and had no adjustments in the code for pension relief and no other adjustments taht would affect the calculations, note now you are claiming pension relief hmrc will alter your current year tax code to give you relief now based on the ye 5/4/18 total - that can create later tax bills if you pay less into your pension this year than the amount they have adjusted for on your tax code!
Thanks for the info there Robob, I hope they don’t decide to alter my current year tax code because due to my normal pensionable contributions being variable month to month, that would end up being a nightmare. Far easier for my personal allowance to remain at the full amount and then claim back through my tax return. I did tick the box about if less than £3000 not to claim through the tax code. I’m hoping that works both ways. I had to claim pension relief 2016/17 too and they haven’t changed it so far. Fingers crossed! I’ll keep an eye on it.
Thanks again.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Correct Tax paid figure?

Postby robbob » Wed Oct 24, 2018 3:42 pm

Far easier for my personal allowance to remain at the full amount and then claim back through my tax return.
unfortunately (i could be be wrong here mind) with regard to expense claims hmrc cant knowingly overtax you - so if they know you have mileage claim or similar they dont like to remove the amount - i guess this can be solved by saying you expect no payments but its a bit ridiculous if you need to tell them porkies to make life simple.

Either way just a keep a very close eye on the tax code being used.


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