maxb

My best guess is that you are likely to keep your current code through the remainder of this current tax year, and then be automatically issued with a new cumulative (no X) code at some point during the next tax year. When I was last on an X code after changing jobs, I was moved back to a cumulative code about a week after filing my Self Assessment return.

Re-making my previous post, without the link that apparently got elided by moderation, and in the process deleted all the line breaks, making it hard to follow: I have not yet needed to do this myself, but expect to need to do so in 2024-25, hence why I'm reading this thread... It is indeed frustrating that HMRC do not provide a simple example of filling in the form for the simple case of a personal investor in a few EIS companies. After much googling, my current understanding is that... Box 41 is the total amount of loss you are eligible to claim for. Do not apply any modification based on your marginal tax rate. The clearest supporting evidence for this I have found is the "Tax Calculation summary notes" (SA110 Notes), a document principally intended for people calculating their own tax due without computer support, but it specifically details how box 41 applies to the overall calculation.
Box 42 is equal to box 41, according to the SA108 notes, unless you have other things to report besides EIS within the "Unlisted shares and securities" section. Box 32 (disposal proceeds) is defined in the SA108 notes as before relief, so we can be confident we're not supposed to make any modification for the relief here. Box 35 (losses) is defined in the SA108 notes as after any reliefs, so we can be confident the effect of the relief must already have been applied by the time we fill in this box. Box 33 (allowable costs (including purchase price)) is the harder to understand one - I feel it is probably intended that, despite it saying "including purchase price", it wants only the portion of the purchase price which was not already relieved by the 30% relief at time of purchase. This is a *guess*, driven by the use of the word "allowable" in the box name, and that if this was not the case, the formula "proceeds minus (allowable) costs equals loss" would not balance.

https://www.gov.uk/paye-forms-p45-p60-p11d/p60 says "If you’re working for an employer on 5 April they must give you a P60." Perhaps the difference of opinion between you and your employer arises because they consider your employment finished on 31st March. What kind of payment was given after 5th April? e.g. was it regular salary / pay in lieu of notice / reimbursement of expenses / compensation? Was the amount of the late payment included within the totals on the P45, or not?

No, unused ISA allowance is permanently lost when a new tax year starts.

It is pretty misleading that it says "nothing to pay" on that page when in practice it often just means nothing yet overdue. You can look up your balancing payment and first payment on account for next year via the file a return service, "View your calculation" then "View and print your full calculation". Note that down, and then follow the links "Tax return options", "View account", "Tax years" to get to a place where you can look up your payments on account already paid. With that information, you can calculate (balancing payment) + (first payment on account for next year) - (payments on account already made) to figure out exactly how much to pay before the end of January. It's a strange quirk of the system that it won't just tell you how much to pay, and makes you calculate it yourself.

It may be that your tax code is actually correct - the significance of the X suffix is that each weekly/monthly payroll calculation will be done completely independently from the history of what you have already been paid this year, using the appropriate weekly/monthly fraction of your coded allowance. Therefore, it sounds right for the code to be based on the full year amount, because each time it is used to calculate a weekly/monthly deduction, the rules for applying X codes only apply the correct fraction for the current week/month. If you'd been instead given a cumulative (no X) code based on the proportion of state pension you will receive this year, that would tell people paying you according to the tax code that the state pension was paid out evenly throughout the full tax year, rather than for the last 23 weeks - and so make them immediately deduct (52 minus 23) weeks of tax deductions from your next payment. Moving you over to an X suffix code for the year in which your sources of income are changing stops that from happening.

You're assuming that the amount due after Self Assessment is entirely attributable to your income from property - but given what you've said, that sounds like it isn't the case. It's important to bear in mind that tax paid as you earn is sometimes more of a best effort estimate than a correct value, and the Self Assessment goes back over all your tax matters for the year to true things up. If you're doing your tax return on the gov.uk website, try going to "View your calculation" and then "View and print your full calculation" - the full calculation provides detailed information on how the website came up with the number it did. Compare the tax the full calculation deems applicable to your employment income, with the amount of tax already deducted from it (from your P60). There's a good chance you'll find the extra pounds accounted for in a difference there.

I have not yet needed to do this myself, but expect to need to do so in 2024-25, hence why I'm reading this thread... It is indeed frustrating that HMRC do not provide a simple example of filling in the form for the simple case of a personal investor in a few EIS companies. After much googling, my current understanding is that... Box 41 is the total amount of loss you are eligible to claim for. Do not apply any modification based on your marginal tax rate. The clearest supporting evidence for this I have found is the "Tax Calculation summary notes" (SA110 Notes), a document principally intended for people calculating their own tax due without computer support, but it specifically details how box 41 applies to the overall calculation. Box 42 is equal to box 41, according to the SA108 notes, unless you have other things to report besides EIS within the "Unlisted shares and securities" section. Box 32 (disposal proceeds) is defined in the SA108 notes as before relief, so we can be confident we're not supposed to make any modification for the relief here. Box 35 (losses) is defined in the SA108 notes as after any reliefs, so we can be confident the effect of the relief must already have been applied by the time we fill in this box. Box 33 (allowable costs (including purchase price)) is the harder to understand one - I feel it is probably intended that, despite it saying "including purchase price", it wants only the portion of the purchase price which was not already relieved by the 30% relief at time of purchase. This is a *guess*, driven by the use of the word "allowable" in the box name, and that if this was not the case, the formula "proceeds minus (allowable) costs equals loss" would not balance. The following third party site - xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx - that turned up in my googling appears to follow this logic.

The notes that go with the tax return - https://www.gov.uk/government/publications/self-assessment-tax-return-sa100 - explain that the "Payments to your employer's scheme" is only for schemes where you paid in and relief at source was NOT applied.

There's quite a lot to unpack here... First, a tax code of 1545L doesn't mean you have a larger Personal Allowance - you still have a £12570 Personal Allowance (until you lose some due to the tapering above £100k) - the tax code just means that HMRC estimated that you would have other reasons besides the Personal Allowance to pay less tax - for example if you have a history of making personal pension contributions, you might be given a tax code which assumes you will continue to do so, and releases some of that tax relief during PAYE. When you get to the end of the year, though, your tax code becomes mostly irrelevant (unless it is also being used to deal with historic under/overpayment from previous tax years), and Self Assessment recalculates everything based on actual values, rather than estimates. Next, I'm not an expert, but I've never heard of a pension arrangement where the employer applied 40% relief. I have heard of "salary sacrifice" where the employer puts the money on your pension without it having been taxed at all in the first place, which would have roughly the same effect for a 40% taxpayer, but in this arrangement, the amount is never included in your P60 gross pay in the first place. Could this be that? You might need to talk to your employer to figure out exactly what the arrangement is. Lastly, even if you were able to able to exclude both the £3000 and the £4000 from your overall income, you'd still be £500 over £100k so there would be some Personal Allowance reduction still.