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  • RE: DWP pension entry causes tax miscalculation

    This is NOT the case As I stated at the top of my message , I had entered details from my P60 s showing gross private pension income of circa £22K and tax paid of circa £2k. This is plenty to cover a mere £800 Gift aid. Hence my concern
  • DWP pension entry causes tax miscalculation

    I have completed my return so am unable to view the exact pages I need to discuss. This is from memory. I entered my P60 income which showed I have already paid circa £2000 tax I wrongly entered my DWP pension in the "Lump sum" box whereas I should have entered it in the "Total annual" box. The figure was calculated as 13 x 4 weekly payments from my bank statement. I also entered £800 in the Gift aid box. My tax due calculation was asking me to pay £200 more than the actual amount I had calculated. When I changed the Gift aid amount to £2000 my tax due calculation was asking me to pay £500 more than the actual amount I had calculated. When I changed the Gift aid amount to £zero my tax due calculation was correct. It took me ages to find where the problem was but when I eventually moved my Pension entry to the correct box and re entered my Giftaid everything worked correctly. The question I have is "Why would I have to pay tax on my Gift aid donations if I have received a lump sum DWP pension payment, regardless of its value?" I entered a figure in the wrong box and I cant be the first person to do that but it does not make any sense to me. Is the system at fault or have I missed a point?