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  • RE: Question tax calculation by HMRC

    Hi, Thank you for that. I submitted my tax return so HMRC has all the details, and I will call them on Monday to discuss that. JeePs
  • Question tax calculation by HMRC

    Hi, If anyone could help to understand my tax calculation by HMRC it would be very helpful. I am doing my tax self-assessment and I have a concern with how taxes are calculated. A: Income Tax due after allowances and reliefs: £32,740.40 B: plus Underpaid tax for earlier years in your tax code for 2021-2022: £743.20 (this is underpaid tax from 2020) A+B: Income tax due after allowances and reliefs: £33,483.60 C: minus Tax deduced from all employments, UK pensions and state benefits: £31,572.80 D: minus Outstanding Debt Collected Through PAYE: £743,00 Balance of PAYE tax: E: £30,829.80 = C-D Total income tax due: £2,653.80 = A+B-C+D But why is the result not: A+B-C-D ~ £1,168? In my understanding B is an outstanding tax I have to pay so it is added, and D is a tax I have paid through the adjustment of the tax code in 2021-2022, so it should be substracted, and they basically should cancel out: B - D ~ 0. But in HMRC's calculation, they are both added, which leads to a double adjustment 743x2 to pay now, how is that possible ? Am I missing something or did HMRC make a mistake ? Thanks a lot! :)