P60-SA tax code difference and how to manage it

hi all, I have a final tax code of 1632L but while doing self assessment it takes the default tax code of 1257L and due to which i have to pay the extra income tax. I checked my p11d there are no expenses added in it.. so how should add the difference on SA please ? Thanks

I am guessing that when you say that Self Assessment takes the default tax code of 1257L, you mean it says your Personal Allowance is £12570 - and that is probably correct. As far as I know, there is only one reason a Personal Allowance can be more than that, according to https://www.gov.uk/income-tax-rates. Having a tax code of 1632L does *not* mean you have a Personal Allowance of £16320 - it means that HMRC estimate that when all of the allowances and deductions that are being managed through your tax code are added up, that's what they will come to. Your next step should be to look at the Notice of Coding that told you your tax code (which can also be found in your online tax account), and see what elements other than the Personal Allowance were included in it. You can then check to see if all those elements are also included in your tax return. An allowance included in your code, but not claimed in the return, would explain what you describe. It can be helpful to think of it like this: your tax code is an estimate to get your tax affairs approximately right over the course of the year. Then, at the end of the year, Self Assessment looks back over everything, ignoring the estimate, and recalculating a final value from scratch. (It does get more complicated if your tax code is also being used to collect underpaid tax from previous tax years - but apart from that special case, tax codes have no bearing on the Self Assessment calculation at all!)

Hi, I'm not a HMRC Admin but your tax code has no place in a self assessment (although if you had an underpayment in your tax code you would need to include the underpayment on the return) so I suspect when you say it is giving 1257L you are actually talking about the personal allowance. The personal allowance is set in law at £12,570 so can never be higher than this (at least until the law is changed). You can sometimes be entitled to tax reliefs, like pension contribution relief or relief for allowable job expenses, but these do not increase your personal allowance. Instead they will reduce your taxable income on your SA. But PAYE can't do that so instead it gives relief by increasing the amount you can earn tax free (giving you a higher tax code like your 1632L). It may be that you have missed off a relief from your SA that you should have claimed, it may be that you didn't claim the relief because you're no longer entitled to it but didn't update HMRC so it was still in your tax code meaning you paid less tax on your PAYE income than you should have.i can help with that unfortunately. But hopefully the info I have given can help make better sense of your SA.

Hi karan99,
Your Self Assessment return will always show the default code of 1257L, but if you include in your tax return the sources that increase your allowances to 1632L, you will receive the benefit of those allowances in your calculation.
If you would like further advice, we would need to access your record - contact us by webchat or phone via Self Assessment: general enquiries to allow us to do this.
Thank you.