Self Assessment Confusion... Please help!

[Rookie S.A guy]

Hello Everyone,

Currently trying to complete my self assessment, my question is, where does the £12.5k personal tax allowance come into play when completing the form?

example;

let’s say, I grossed 50k last year, less 12.5k personal allowance, 37.5k remains. My allowable expenses were 7.5k, 30k remains. My CIS contributions was 10k, therefore have I paid just over 33.3% of my taxable earnings to the tax man? Therefore, should I be getting more than the £54 currently on offer from the gov form I’ve completed...

Seems wrong, hopefully it is and I can claim some money back during these uncertain times...

Thanks for reading, any questions or advice is greatly appreciated.

Frankie

 

[Mr D]

You provide the details of your business income and expenditure.
You ignore the £12.5k, its not relevant to your figures.

Once HMRC have all the figures they factor in the tax allowance when deciding how much tax to charge you.

33.3% of taxable earnings? Yes that's pretty common. Some pay more. Not many pay less.

The £54 you mention - where is that mentioned? I don't recall that sum from my self assessment forms.

 

[KAC]

Have you remembered your class 2/4 National Insurance Contributions

 

[DWS]

If your profit was 42.5k and you paid 10k in CIS then you should be getting a refund of more than £54

 

[Rookie S.A guy]

If your profit was 42.5k and you paid 10k in CIS then you should be getting a refund of more than £54

This is what I thought... I’ll go back to the form.

 

[justintime]

Don't forget to Factor in NI contributions as well. Even so you should still have a rebate of £792

Tax is 6k Ni is £3048 NI Fixed £159

 

[SteveHa]

Tax £6,000, Class 4 NI, £3,048.12, Class 2 NI £159.00, total £9,204.12. Paid £10,000, refund, £795.88.

 

[UK Contractor Accountant]

Class 2 NI £159.00

wrong year rate? I

I assume he is doing 2019/20 tax return - £3 per week

 

[SteveHa]

wrong year rate? I

I assume he is doing 2019/20 tax return - £3 per week

53 week year.

 

[justintime]

Tax £6,000, Class 4 NI, £3,048.12, Class 2 NI £159.00, total £9,204.12. Paid £10,000, refund, £795.88.

£792 is closer