Self Assessment personal allowance 12570 but PAYE allowance 12579.

My only income is through PAYE, I have earned under £100,000 so I was expecting my full allowance from my tax code of 12579. I have checked my P60 figures and payslips against the PAYE HMRC calculator, I have also ran the payroll through HMRC basic tools and have used two other payroll softwares to verify the PAYE code and they all agree with the tax I have already paid with a tax code allowance of 12579. I have contacted the software vendors who have said they calculate tax and use tests supplied by HMRC and this is the correct way to calculate PAYE due. My self assessment calculation is only allowing 12570, because of the difference it is telling me I owe tax. Can you please help as I am not sure how I get this corrected/sorted? Thank you.

I don't think it's possible to have a PAYE tax free amount of £12,579 because tax codes only deal with tax free amounts in multiples of £10. Furthermore, the amount in your tax code is not an allowance itself - rather, it is an attempt to summarize all allowances and other personal circumstances that apply to you, into an estimate that controls how PAYE is applied during the year. At the end of the year, Self Assessment looks back over what happened in the year, and charges/refunds tax to correct for anything that wasn't exactly right under PAYE. You need to look at the reasons you were given a non-standard tax code, and ensure all those reasons are declared in the proper parts of your Self Assessment.

Hi,

The personal allowance for 2022 to 2023 is 12570. Any amount above this would be in respect of additional allowances claimed.

You may have claimed relief for expenses or a pension that has increased this amount and you can check this on the tax code issued to you.

Thank you.

I agree with S4mmyhelp. For 2022/2023 tax year I had no other taxable income besides what I earned through PAYE. When I log into my account and browse to https://www.tax.service.gov.uk/tax-you-paid/2022-2023/right-amount it shows: "You paid the right amount of Income Tax for 6 April 2022 to 5 April 2023" The tax amount matches the amount on my P60 for Tax year to 5 April 2023. However when I completed my Self Assessment in calculated it said I owed £2.00 in tax. I have paid the £2 but I am puzzled why the self-assessment calculated the extra £2.00 tax. I have always thought any tax code e.g xyx meant a personal tax allowance of £xyx9.00. I think the tax tables show the tax-free amount are based in £xyx9.00.

Hi,

On the tax code you would add a zero to the end. For the current 2023 to 2024 tax year the standard code is 1257L giving tax free allowances £12570. There can be a slight difference at the tax year end depending if wages are rounded up or down when the payroll is processed.

Thank you.