The past three years HMRC have told me to do a self assessment and then I get a bill for more tax!! I don't understand why though as my earning aren't over 50k! Now say 4 years ago I had a good year and it may have crept over 50k possibly but not since then!
Its the sum of the parts that matter
+ p1d1 benefit value
less the all important deduction for any pension payments made by you direct or deducted from your "net pay" (ie if employees pension contributions didnt reduce your taxable pay ignore employers contributions salary sacrafice (probably nil if you wokr for huge company??)
+/- any other taxable adjusts
I suspect the culprit here will be your snazzy company car (hmm bmw or audi?) that could easily have a p11d benefit value of 8k plus - note for past few years the benefit values have been increasing each year at a decent lick !!
Note depending on the amount of kids you have you are probably paying 40% tax + 17% child benefit tax charge (2 kids - higher charge more kids less 1 kid )and 2% ni for earnings over the 50k bubble so 59% down the swanny - getting the car benefit down (electric cars are super tax efficient at present) or adding to pension to get the vital number below 50k will avoid you throwing money down the drain - anyone on earnings between 50k and 60k should really be getting their income below the magical 50k figures UNLESS they are happy paying 57% + tax. Obvioulsy locking money away in pension for 1/3 of your life may not seem ideal but is often the lesser of two evils - many overpay on mortgage on ultra low interest rates while at same time suffering the 57% tax rate on this marginal earnings - i sometimes question the wisdom of this lack of at least looking at the available options for some who say (i can't manage on less than 1k per week).
No biggie as long as you understand the full picture and arent throwing your own money down the drain.
salary sacrafice extra into pension is the bees knees here tax wise as you can also avoid the 2% ni charge
Am I filling the form out incorrectly? Should it be just p60 info or what? I'm so stuck i don't know what to do,
Possibly although i suspect its purely the 8k+ car benefit - go back in and look at your calc for last submitted year
salary should be per p60
benefit should be per p11d
if the sum of those 2 is over 50k thats your "starting problem"
not entering pension contributions on tax return - or entering at cash value rather than grossed up value - careful not to claim for the wrong type of pension payments - a gooe double check is look at what goes into your pension pot in that tax year and its the stuff that has 25% added in by hmrc when it gets in the pot that should end up on your tax return (grossed up value)
Also ensure if you can claim tax relief on work miles you do so - it sounds like your employer is covering the work related fuel in full though - so its unlikley there is a claim.
If you have opted out of workplace pension then your overall loss is even igher as you would also be missing out on the extra 4% freebie or so matched contribution by your employer !!!