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Posted Fri, 05 May 2023 17:01:36 GMT by word2mother
hi. i earned roughly 61000 this year and as far as i know owe nothing from previous years. i am cis registered. my boss (i am self employed) took the CID 20% deductions all year, so i ended up paying roughly 12500 in tax. i realise my tax around roughly 37000 goes up to 40%, which i clearly havent paid (if not automatically taken) could be causing me confusion, but using the HMRC calculator, which does not account for expenses, it said i should be owed around £280. now doing my return, i put expenses in around 6000, and it is saying that i owe them around £1200. as i was confused, to test, i changed my expenses to 20,000 and that resulted in me being owed £3800... of course my expenses weren't that much but how // what is going wrong?? if i earn 61000, pay 12000, my taxable income is 49000 (calc says owed 280£), put a further 20,000 for expenses (example only) making my taxable incoming 29,000, i am them owed just shy of 4,000... on the calculator, me 20$ tax is 7000 and me 40% tax is 4,000, i already paid 12500 in tax, so as the calc says, im owed around 300, but then surely if i add 5,000 in expenses, whatever tax that saves me should be going in my pocket, but im being told im 1400 worse off (280 owed - the 1200 the SA is saying i owe... please help
Posted Thu, 11 May 2023 12:55:15 GMT by HMRC Admin 25
Hi word2mother.

For self-employment you would also have class 2 and class 4 National Insurance due.
If you have further queries about the calculation you should contact our Self Assessment Team as they will be able to view your calculation and discuss it further
Self Assessment: general enquiries

Thank you. 

Posted Thu, 11 May 2023 17:05:37 GMT by word2mother
i didnt click breakdown of my payment which wouldve answer my questions so yes it is class 4 related NI, cheers, delete if needed. thanks

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