HMRC simple assessment
Discussion
I will preface this by saying that I have probably been a bit naive… in March 2023 I landed a new job with a significant payrise, and earned a good chunk of commission through the financial year. Medical sales job, PAYE, pension health cover.
I received a simple assessment from HMRC yesterday (for 2023/24 tax year demanding a payment of £3500 by 1 July.
Having done some rough maths, the amount of tax I paid that year does seem to be low and the amount they are asking for does seem to be correct.
Planning on contacting an accountant on Monday but just wanted to ask for thoughts/opinions (if indeed there are any) on why it’s taken hmrc a year to figure this out and why I’ve been given only 3 months to cough up. My wife is on maternity leave, and whilst I have the money I’d rather not pay it in one go if I can help it.
I am a nurse by trade, hence I think I’ve been naive as I’ve not had a job where I earn significant money before, and probably could have avoided this had I been a bit more clued up.
Whilst being PAYE is limiting in terms of self assessment, getting paid into a ltd company etc I wondered if there are any tips and tricks to prevent this happening again.
Thanks.
I received a simple assessment from HMRC yesterday (for 2023/24 tax year demanding a payment of £3500 by 1 July.
Having done some rough maths, the amount of tax I paid that year does seem to be low and the amount they are asking for does seem to be correct.
Planning on contacting an accountant on Monday but just wanted to ask for thoughts/opinions (if indeed there are any) on why it’s taken hmrc a year to figure this out and why I’ve been given only 3 months to cough up. My wife is on maternity leave, and whilst I have the money I’d rather not pay it in one go if I can help it.
I am a nurse by trade, hence I think I’ve been naive as I’ve not had a job where I earn significant money before, and probably could have avoided this had I been a bit more clued up.
Whilst being PAYE is limiting in terms of self assessment, getting paid into a ltd company etc I wondered if there are any tips and tricks to prevent this happening again.
Thanks.
If your tax affairs are as simple as that, you shouldn't need to pay someone to do your sums
Step 1, if you haven't already got an HMRC online account is to register at https://www.gov.uk/log-in-register-hmrc-online-ser.... If they have to send out a new account login, it takes about 10 days by post
Step 2. log into you online HMRC account at https://www.gov.uk/log-in-register-hmrc-online-ser... and go to Paye as You Earn and then Check Current Tax Year. This will show all the payments that your employer has informed HMRC about this tax year, check there is nothing missing
Step 3. invest £38 in Taxcalc individual edition. Plug in your numbers under employment, bank interest, etc and it will tell you what you owe. It will also submit your tax return online, once you have cross-checked against your P60
Step 4. pay tax owed for this tax year by 31st Jan next year
Step 5. if Taxcalc calculates that you don't owe as much on account for the coming year, go back to the HMRC site and request that they reduce payments on account - if you're not expecting to earn as much commission in the coming year, that would be a valid reason
Step 1, if you haven't already got an HMRC online account is to register at https://www.gov.uk/log-in-register-hmrc-online-ser.... If they have to send out a new account login, it takes about 10 days by post
Step 2. log into you online HMRC account at https://www.gov.uk/log-in-register-hmrc-online-ser... and go to Paye as You Earn and then Check Current Tax Year. This will show all the payments that your employer has informed HMRC about this tax year, check there is nothing missing
Step 3. invest £38 in Taxcalc individual edition. Plug in your numbers under employment, bank interest, etc and it will tell you what you owe. It will also submit your tax return online, once you have cross-checked against your P60
Step 4. pay tax owed for this tax year by 31st Jan next year
Step 5. if Taxcalc calculates that you don't owe as much on account for the coming year, go back to the HMRC site and request that they reduce payments on account - if you're not expecting to earn as much commission in the coming year, that would be a valid reason
mikef said:
If your tax affairs are as simple as that, you shouldn't need to pay someone to do your sums
Step 1, if you haven't already got an HMRC online account is to register at https://www.gov.uk/log-in-register-hmrc-online-ser.... If they have to send out a new account login, it takes about 10 days by post
Step 2. log into you online HMRC account at https://www.gov.uk/log-in-register-hmrc-online-ser... and go to Paye as You Earn and then Check Current Tax Year. This will show all the payments that your employer has informed HMRC about this tax year, check there is nothing missing
Step 3. invest £38 in Taxcalc individual edition. Plug in your numbers under employment, bank interest, etc and it will tell you what you owe. It will also submit your tax return online, once you have cross-checked against your P60
Step 4. pay tax owed for this tax year by 31st Jan next year
Step 5. if Taxcalc calculates that you don't owe as much on account for the coming year, go back to the HMRC site and request that they reduce payments on account - if you're not expecting to earn as much commission in the coming year, that would be a valid reason
Thanks for the advice. I will take a look at taxcalc. You’re right- rather not pay someone else to figure it out for me! Step 1, if you haven't already got an HMRC online account is to register at https://www.gov.uk/log-in-register-hmrc-online-ser.... If they have to send out a new account login, it takes about 10 days by post
Step 2. log into you online HMRC account at https://www.gov.uk/log-in-register-hmrc-online-ser... and go to Paye as You Earn and then Check Current Tax Year. This will show all the payments that your employer has informed HMRC about this tax year, check there is nothing missing
Step 3. invest £38 in Taxcalc individual edition. Plug in your numbers under employment, bank interest, etc and it will tell you what you owe. It will also submit your tax return online, once you have cross-checked against your P60
Step 4. pay tax owed for this tax year by 31st Jan next year
Step 5. if Taxcalc calculates that you don't owe as much on account for the coming year, go back to the HMRC site and request that they reduce payments on account - if you're not expecting to earn as much commission in the coming year, that would be a valid reason
OIC said:
Is TaxCalc one of the allowed MTD software packages?
May be a good investment to buy it now before the price shoots up with demand if / when MTD happens.
Sorry if OT.
While we're OT is there a list of other allowable software with purchase price around somewhere?
Sorry again OP.
Software with a MTD bridge? Try the HMRC website;May be a good investment to buy it now before the price shoots up with demand if / when MTD happens.
Sorry if OT.
While we're OT is there a list of other allowable software with purchase price around somewhere?
Sorry again OP.
https://www.gov.uk/guidance/find-software-thats-co...
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