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Posted Fri, 05 Jul 2024 11:21:06 GMT by DanFarley
Hi. It now seems that self-assessment is not required from 2023/24 for the £100-125K salary bracket. How then does under/over-payment of tax get calculated? A P60 doesn't contain any info on the amount of charitable giving, the over-tax on which is typically paid back by the next year's tax code (e.g. increased from 1257L to 1960L). My employer can only use the tax code given by the HMRC, so they cannot adjust it to pay it back via PAYE. The effect of charitable giving in this particular salary range is even more profound, because the personal allowance of £12570 reduces steadily to zero at £125K. This would be lessened by having a larger allowance due to having given more to charity in the previous year (i.e. less of a £120K salary will appear in the £100-125K bracket - virtually none based on 1960L). It seems to me that you'd actually get penalised for giving to charity! Any advice welcome!
Posted Thu, 11 Jul 2024 06:18:04 GMT by HMRC Admin 25
Hi DanFarley,
If you no longer meet Self Assessment criteria then HMRC will review the tax year from your PAYE records.
If you are higher rate and make gift aid payents then you can contact HMRC with the details of the gift aid payments and this will then be taken into account when the tax year is reviewed.
You can contact HMRC to update the gift aid detail here:
Income Tax: general enquiries
Thank you. 

 

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