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Self assessment help - taxed twice?

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    Self assessment help - taxed twice?

    Filling out my tax return and am having trouble getting the total amount of tax I owe to display correctly

    In the previous financial year I have employment earnings which I have already paid tax on, and self employment earnings which I haven't paid tax on yet.

    When I go to submit my tax return, the total amount of earnings it says I am due to pay tax on is calculated from my employment earnings plus my self employment earnings - when I have already stated on the form that I have paid tax on my employment earnings already and have entered how much tax I have paid. Why is it trying to tax me on this again? I've not submitted a tax return before so may have missed an option somewhere... but can't see how to fix it so that the estimate is correct. I only owe tax on my earnings from self employment.

    Any help would be much appreciated. Thanks

    #2
    Hard to see why, 1. Pay from this employment - the total from your P45 or P60 - before tax was taken off 2. Tax taken off pay in box 1: Nowt else to affect it that I can see. Have you viewed the calculation for a clue?
    bloggoth

    If everything isn't black and white, I say, 'Why the hell not?'
    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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      #3
      Originally posted by xoggoth View Post
      Have you viewed the calculation for a clue?
      I cant find the clac this year. Only the number. It used to be x at y!% etc. Easy to tie that back. But seems to have gone now.

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        #4
        Your total taxable earnings will be made up of your employment and your self-employment earnings. Tax is then calculated on these earnings and the tax that you have already paid at source (like the employment income) will be deducted from the tax liability so that you are only paying tax on the self-employment income.

        If you have entered the tax paid from the P60 then this should be deducted in the final tax calculation.

        Hope this helps!
        Craig

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          #5
          Just because it discusses your total earnings does not mean you'll pay tax twice. Say you earned £10,000 on each of your employed and self-employed incomes and had £1000 PAYE tax deducted from your employed income then your tax return would show:

          Employed earnings = £10,000
          Self-employed earnings = £10,000
          Total earnings = £20,000

          Tax due on total earnings = £2000
          Amount due to pay = £1000

          Think of your tax return as a balance sheet, it shows a full statement of the year's tax-relevant activities and calculates the balancing payment due either way as a tax payment or tax refund.

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