Hi,
I'm clueless about this sort of thing, but my wife received a letter saying she paid too little tax for the year 18/19.
Not sure if I'm allowed to link to a picture of the letter: https://imgur.com/a/ot0jV8i
The calculation breakdown from the letter:
Income
*Employer Name* Income = £12,459.89 (Income Tax = £120.00)
Total Income = £12,459.89 (Income Tax = £120.00)
Less your allowances
Personal Allowance £11,850.00
Total tax free amount £11,850.00
Your total taxable income £609.89
Income Tax Rates
Basic rate at 20% on £1,799.00 (Income Tax = £359.80)
Total £1,799.00 (Income Tax = £359.80)
Result
Total tax payable £359.80
Tax you've already paid £120.00
You owe HMRC £239.80
I don't understand where the £1,799.00 figure comes from.
If the total taxable income is £609.89, where is the other £1,189.11 coming from?
Am I missing something really simple or is this an error on their side?
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