maxb

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.

PAYE only reacts correctly on its own to the increasing tax rate as you go up through the 20%, 40%, 45% bands. It fails to react automatically to someone's pay starting to move above the £100k threshold for the Personal Allowance being gradually lost. PAYE only handles that if HMRC become aware of the amount of expected full year earnings, early enough to issue a tax code change to account for the lost Personal Allowance. It's easy for that not to happen, especially if some of the pay comes in the form of an annual bonus rather than steadily throughout the year - and then you end up finding you've been under-taxed at Self Assessment, and have to pay the extra.

Yes, you do need to pay the tax. Your numbers above all look correct. The page telling you that you have no tax due at the moment is saying that because 2022/23’s tax doesn't come due until the end of tomorrow. The reason you have tax to pay, even though some is deducted automatically, is that as you have earned more than £100k, you incur a reduction to your Personal Allowance - and the PAYE system is not sophisticated enough to adjust for this automatically. The deadline for submitting the return and paying the tax is THE END OF TOMORROW but it doesn't matter which way around you do those two things. You should be able to find bank details on HMRC's website to make a payment, and I think it's linked from the end of the return submission process, too.

That guidance says PILON goes in box 3 though, not 5-9 ... Also if your PILON went through payroll so that it is included in your P45, it would have already been accounted for within the employment section of the tax return, in which case the prevailing advice given in other threads in this forum seems to be to leave it in the employment section, and only report figures not already covered there in the 'other income' section.

The fact that the pension provider is adding basic rate relief is a pretty strong indicator it is "relief at source", though. Another thing you can check to confirm is your total taxable pay, as listed on your P60 / P45 / payslips. With "relief at source" you would expect this to be your total expected salary (possibly plus the value of any taxable benefits in kind, if your employer has opted to "payroll" them instead of issuing a separate P11D). With "net pay" (also known as "salary sacrifice"), the value of the pension payments would have been removed from the total taxable pay figures. Note that even if *you* are contributing to your pension via "relief at source", your employer may also be paying in contributions, as a benefit separate from salary. Employer contributions will not benefit from tax relief, and should not be included on the tax return. Your pension provider's statement should identify the different kinds of contributions, if relevant.

Hi, The fully automatic parts of PAYE fail to take account of the reduction of Personal Allowance when you earn over £100k. As a result, the first year you earn over £100k, PAYE can easily fail to deduct enough tax, leaving you with an amount owed at Self Assessment. In subsequent years, your tax code tends to be adjusted to take account of the amount of Personal Allowance you lost the previous year - but pay rises or variable bonus pay can still throw the calculation off, leaving an amount to be paid or refunded at Self Assessment.