Petem95

Finally got round to filling out my tax return, and basically I've been a full time employee of the same firm for the whole tax year, on PAYE - no other taxible income, not being paid through a ltd company or anything.

I would guess this means all the tax I'm due is taken at source, so why on earth is it saying I owe tax when I fill out the online thing????

A regular employee wouldn't a request for under-paid tax at the end of the tax year, so anyone got any idea why I'm getting this request?

Varboy

I had the same thing mate, turns out they miscalculated the higher rate tax relief on my pension (for the 2nd year running)

Varboy

Forgot to say, give them a call, they are suprisingly helpful for a Government body.

ritchie21

Why have you filled out an online tax return if you're an employee? There should have been no need.

Petem95

Did you ring them up then to find out what was going on?

I've not made any pensions contributions, student loan contributions or anything - it's just basic taxed income on a PAYE salary from the same firm all tax year - don't understand how I can somehow owe 1500quid??

Varboy

Yep, just give your registered tax office a ring, as I said they are suprisingly helpful.

Petem95

I was a company director previously, but have just been a regular employee for past couple of years - but seems once you start having to do tax return you always have to...

Will defo give the tax office a bell this week though, thanks

nooobyscoooby

Not true about doing tax returns for ever Once you are fully PAYE, unless you have other income or taxable gains to declare, you should not require a form and the tax office will tell you that once everything is in order.

Sonic'

True, you dont have to continue doing them if you no longer need to do them

I used to do them as I was in the 40% tax bracket, and was claiming the addional tax relief on my pension payments, then I had to do them to claim back relief on mileage allowance

Ive since changed companies and am no longer in the 40% tax bracket, and now no longer need to claim relief on mileage allowance

Fuzz

What I was wondering too.

HankScorpio

I'm the same (was contracting with own company for a few years, went permanent in 2001) and every year since, I've owed them exactly £2.40 and only this year have they said I don't have to do any more.

Devildog

Could be a number of things:

- your tax code that your employer has is wrong (or was wrong)
- you have taxable benefits declared late in the tax year
- your employer has made a mistake (it happens)
- You are receiving a rebate for pension contributions and have miscalculated the figure in the on line return (or simply made a mistake on the form)
- You have savings being taxed at source at the lower rate and you are a higher rate tax payer

etc, etc.

As above, call the tax office and ask. Also double check your tax code as per your employer is the same as the one HMRC have sent you.

Mitchy260

If you've breached the 40% tax barrier then this may be a reason.