PeterRabbit

Oh I just checked the pdf of the UK Property return page and it does show that box as being number 29 - I don't know if it's a difference with the online return (which is what I was referring to in my previous comment).

I just came across this and it seems useful to know! In my self-assessment return for 2023/4, "Other allowable property expenses" is box 31, but the notes corresponding to the above still say to use box 29, which it still refers to as "Other allowable property expenses". Is it still correct to enter the expenses in the "Other allowable property expenses" box, even if the number does not match? (The notes should probably be made consistent with the return structure, unless mine has gained two boxes somewhere for some reason.)

Hi Stroller - I thought that for my situation it was because my dividends were poking into the higher rate tax bracket (when those in the nil rate band were included). I agree the example on the gov.uk page indicates that if everything is in the basic rate bracket, the dividends above the nil rate band should be taxed at the dividend basic rate - there's no benefit to setting the personal allowance against dividends in that case that I can see. But I feel I barely understand this!

I eventually got put in touch with an HMRC advisor who was very helpful. They said that the online calculation was correct, and I thought I'd share the explanation in case other people are puzzled by this, as it's not clear from available online information (unless you want to trek through actual tax legislation apparently). The key points seem to be that: 1. Savings and dividends are treated as the highest part of total income, with dividends considered the higher part, meaning I think that the personal allowance and basic rate bands are used against other income first. 2. The savings and dividends falling into the nil rate allowance bands still contribute to allocating income to basic/higher rate bands. So initially my "Pay, pensions, profit etc.", plus savings income and the first part of my dividend income filled up the personal allowance and basic rate band, then my £544 of dividends above the dividend allowance were in the higher rate band. Then beneficial ordering was applied, so the £544 was set against the personal allowance, displacing £544 of other income into the basic rate band, and £544 of savings and dividend income into the higher rate band - but since these were covered by the nil rate bands, nothing was taxed at the higher rate. So the net effect of the dividends was to have £544 taxed at the basic income tax rate of 20%. (It seems that I would pay less tax if my personal allowance were set against my other income and the £544 of dividends were put in the basic rate band, but I guess beneficial ordering is not supposed to work that way.)

Hello, I'm trying to speak to a human being about self-assessment through the HMRC chat tool (https://www.tax.service.gov.uk/ask-hmrc/chat/self-assessment). This morning I'm being told "Our advisers are not available to discuss your query at the moment". I don't see any indication of the hours when advisors should be available on the web pages - when is this chat manned?

I didn't ask for statistics. I asked for an example to show how what I'm seeing could be correct.

So there is no way of sending a correction if the figures we have entered are correct but we think the calculation of tax due is wrong? I would use those contact options if there were any advisors available on webchat or who picked up the phone...

Thanks for the responses. HMRC Admin - if I understand correctly, it would only be beneficial for the personal allowance to be set against dividend income if there were no other income subject to a higher tax rate. But I have salary above my personal allowance, and the marginal tax rate on that is always higher than for dividend income, so it should always be beneficial to set the personal allowance against the salary and have dividends be taxed at the dividend rates. Can you give an example of tax return numbers where salary exceeds the personal allowance, but it would be beneficial to set the personal allowance against dividends rather than salary, or another way in which dividends apparently get included under "Pay, pensions, profit etc." in the most beneficial arrangement? I'd like to get the correct numbers confirmed before submitting the return, which seems to me like confirming acceptance of the calculation given. I have tried getting through to the self assessment advisors, but with no success so far. Clive - nice thought but I'm paying plenty of income tax above what is due for Gift Aid.

Hello, I think HMRC's online calculation of my tax due in the 2023/4 tax year is incorrect*. Is there a way to override the calculation and enter the correct tax due in the online system? I've read that it's possible to amend a return after it has been submitted online - is there a way to correct the final calculation, or can only the entries be corrected (such that the final calculation will not be corrected)? *See issue at https://community.hmrc.gov.uk/customerforums/sa/db141121-9c05-ef11-a81c-6045bd0d9b48#6046d370-9a09-ef11-9f8a-6045bd1255b5 , which nobody has said is not an error yet.

Thanks for the response. My other income does exceed my personal allowance. Even if it didn't, it still shouldn't result in marginal tax on dividends of 20%, should it?