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Posted Wed, 17 Nov 2021 12:02:35 GMT by Simon
Hi, I am filling out a self assessment for tax year 20/21. I received a tax code notice in October 2020 to tell me my tax code was changing due to me claiming tax relief on expenses while having to work from home. The same tax notice also lists an "Earlier Years Adjustment" of £9, taking my total tax-free allowance to £12821 (£12500 + £312 + £9). So far I have only filled in the income section from my employer where I input my already-taxed income plus the £312 expenses, but when I calculate the return it comes back saying I still owe £3.40. If I had filled out everything correctly I would expect it to say £0, because I haven't yet declared any of my extra income. In the breakdown of the tax calculation, I can see it takes my earned income and subtracts the £312 expenses allowance and the £12500 base allowance to give a total amount on which tax is due. It then calculates the tax required and subtracts the tax already paid through my employment which leaves £3.40 left over. Can you tell me why this is? The £9 EYA isn't mentioned anywhere, but even if I subtract that from the taxable amount then I would still end up with £1.60 left to pay. Any help appreciated. Thanks, Si.
Posted Wed, 17 Nov 2021 15:48:36 GMT by HMRC Admin 17

You should include 321 on the return.

Due to roundings for PAYE you always end up with a small amount underpaid.

Thank you.
Posted Wed, 17 Nov 2021 16:13:38 GMT by Simon
OK thanks, I will enter £321 in the "Other expenses and capital allowances" box under the employment section.

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