ASK TO PAY MORE INCOME TAX FOR 2008/09?
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I just received letter from income and revenue that i have underpaid tax for 2008/09 and ask to pay it back. I am nurse with three jobs. For that financial year; the main job my income was £32,871.34, taxed £5366.40(after personal allowance) and Final tax code was 603L. Second job, my income was £19,186.14, taxed £3837.20(no personal allowance) and final tax code was BR. Third job, my income was £8047.69, taxed £443.40 (with personal allowance) and final tax code was 603L. My dispute: The third job, I think the personal allowance was wrong because I have already received from main job. So, I used the basic rate (20%) to calculate the right amount was supposed to pay. It came £1609.54, therefore I underpaid by £1176.14. Their dispute: On the letter they sent to me, they add all the incomes and used basic rate (20%) up to £34,800 and the rest of income they used higher rate (40%). That is how they got I have underpaid by £6373 I read tax guide on internet about two jobs, it explained with example if you have two jobs and you are receiving £25,000 each still you will be able to pay basic rate although when you combine the two incomes, it exceeds basic rate limit (£34,800). According to my final tax codes (BR and 603L) are they right for me pay higher rate? And that guide line on the internet is wrong?
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Answer:
Your PA was used against your first job, so all other income is taxed at 20/40%. Add up total income, deduct £6475 and tax balance to £34800 at 20%, the rest at 40%. Looks like you owe more than they're demanding!
lew at Yahoo! Answers Visit the source
Other answers
You earned a lot of money, you should have been paying at 40%. Feel free to appeal and have the sums re-calculated.
Petrusclavus
ALL income above the £34800 threshold is taxed at 40%. You can certainly have two jobs paying 25k and only deducting the basic rate but it is up to you to pay the extra tax you owe on the amount over 34.8k at the end of the tax year. Use the calculator below to work out the tax yourself.
agent4927
It's no good asking on here - you have no idea of the credentials of the people who answer. Your best bet is to first make an appointment with your local Inland Revenue office and take all the relevant paperwork there to try and sort it out. If that fails, you need to take a deep breath and consult a Tax Accountant - it will cost you money, but might well save you quite a bit of what they are asking for. Good luck - but beware any answers that appear to be from "experts"!
Essex Ron
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