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Posted Mon, 16 Jan 2023 20:28:03 GMT by JeePs
Hi, If anyone could help to understand my tax calculation by HMRC it would be very helpful. I am doing my tax self-assessment and I have a concern with how taxes are calculated. A: Income Tax due after allowances and reliefs: £32,740.40 B: plus Underpaid tax for earlier years in your tax code for 2021-2022: £743.20 (this is underpaid tax from 2020) A+B: Income tax due after allowances and reliefs: £33,483.60 C: minus Tax deduced from all employments, UK pensions and state benefits: £31,572.80 D: minus Outstanding Debt Collected Through PAYE: £743,00 Balance of PAYE tax: E: £30,829.80 = C-D Total income tax due: £2,653.80 = A+B-C+D But why is the result not: A+B-C-D ~ £1,168? In my understanding B is an outstanding tax I have to pay so it is added, and D is a tax I have paid through the adjustment of the tax code in 2021-2022, so it should be substracted, and they basically should cancel out: B - D ~ 0. But in HMRC's calculation, they are both added, which leads to a double adjustment 743x2 to pay now, how is that possible ? Am I missing something or did HMRC make a mistake ? Thanks a lot! :)
Posted Fri, 20 Jan 2023 12:19:25 GMT by HMRC Admin 2

Please contact our Self Assessment team so we can check your account and explain the difference between the outstanding debt collected through PAYE and underpaid tax for earlier years.

Self Assessment: general enquiries

Thank you.
Posted Fri, 20 Jan 2023 16:20:30 GMT by JeePs
Hi, Thank you for that. I submitted my tax return so HMRC has all the details, and I will call them on Monday to discuss that. JeePs

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