Self-Assessment Tax Return

[kloofnek]

Have just done my tax return online and am shocked to find that I now have to pay more tax on my net income from my employment on which I P.A.Y.E.which is part-time.
Surely this cannot be right!!!
I receive a State pension from abroad,hence the self-assessment.
At a click of the submit button and it gave me the amount of tax I have to pay...are they just trusting me to put in the correct amount (my overseas pension)... as there would be no time to check it.As the money is paid straight into my bank account it does not pass through any channel connected to the tax office.

Surely a lot of people must be cheating the Inland Revenue,if so,am I being too honest!!!!

[buildersmate]

It will be true if the tax code your employer has is incorrect.

[buildersmate]

That, of course, is only the answer to your first question.

Everyone who completes SA is being trusted to put the correct info in - that's what SA means.

Of course it is posible to try and cheat - trouble is, you might just get found out.

[gingejbee]

Both your UK State Pension (I assume you receive one!) and your foreign pension count towards your overall earnings and these will "mop up" some of your personal allowance. HMRC can only collect your tax on your PAYE earnings and it has to use your tax return to calculate the rest of your tax liability. Your tax code is then adjusted and the balance of tax due is usually collected through your PAYE employment.
HMRC does spot checks on tax returns so it is not wise to be "creative" when you fill in your details. If you are found to have deliberately falsified information in your tax return, you will have committed a criminal offence.

[kloofnek]

I am still confused..let`s see if I can explain clearly.
I P.A.Y.E on my employement,which I have said is only part-time.I have a small UK State Pension as have not worked 44 years in the UK to receive the full amount.
Plus a little pension from my employment.On these I do not have to pay anymore tax.

The only income I have to pay tax on is my foreign pension...yet on the tax return ,my part-time employment is calculated with it even though it has already been taxed.
.
Surely this cannot be correct.?????

[jaydah]

Take your figures to your IR for verification.....before payment, as IR rarely give refunds.

[kloofnek]

I think I shall have to as it does not seem correct to me,yet have gone through it with a tax representative on the phone,said it is right...I must have spoken to a dozen people over the last few days..each giving me different info.but at the end of the day they STILL say I have to pay on my net income as it is part of my income...grrr!!! I am tearing my hair out with it all.
Why is it..that in this country the left hand doesn`t know what the right hand is doing...come across it numerous times!!!!

[bednobs]

isn't tax payable if you earn over a certain amount? you say you don't have to pay tax on your pension, but if your total earnings take you over the paying tax threshold then surely you do?

[buildersmate]

There's the rub - you DO have to pay tax on your pension - whether it comes from the UK or abroad. As soon as you bring your foreign earnings (be it pension or other income from investments, say), into the UK it becomes taxable. The only cop out MAY be if tax has already been paid on the foreign earnings at source in the foreign country - unlikely on a pension).

So HMRC will be adding up all of your income, wherever it comes from, deducting your personal allowance and claculating the net amount of tax due. They will then deduct any PAYE tax you have already paid and the resulting figure is the net amount of tax that you owe. This is basically the calculation that the SA system is performing.

[gingejbee]

I can confirm that buildersmate is correct.

[dzug2]

The tax you pay on your part time earnings will cover not only the tax on them, but on other income (eg state pension, overseas pension) that cannot be taxed directly. So it might appear to be high in relation to those earnings taken in isolation.

Is that what's causing confusion?

[kloofnek]

Hi everyone..yes more confused!!
When I say do not have to pay tax on pension,,I mean I have already paid it through P.A.Y.E along with my part-time employment.

What I cannot understand is why my salary and pension are included in my income (for Self Assesment,that is) when I have already paid my tax on it.
I should only be taxed on my foreign income...otherwise why bother P.A.Y.E ,if they are going to tax me again.
The only reason I am doing SA is because of the foreign income.Never had to before receiving it...several people I have spoke to say it must be wrong as it does not make sense.

[factor-fiction]

If I understand correctly HMRC just want to know what your total gross earnings are so they can assess whether the correct amount of tax has been deducted bearing taking account of gross income and your tax allowances.
I don't think you will be taxed twice on the same income.

[kloofnek]

Hi Factor30.
Wish I could get to the bottom of it.
Honestly.it really looks like I have been taxed again on my employment income.as the gross income has been added to my foreign pension,..OK,..at the bottom of page ,I can see where they have deducted the tax I P.A.Y.E..but.the net amount is still there and classed as income to be taxed along with the pension..why????
I rang the HMRC helpline,for the 10th time in one day ..all hopeless...the last person was really patronising..made me feel awful..when I asked her name,( intended to report her)she whispered it so I could not understand her...should have told her to "speak up,woman".But by this time I was so upset and confused that I let it go.

No wonder people leave the country to avoid taxation especially with the new government we now have who will not be giving us anything back..only take,take take!

Sorry.I am getting agitated here and letting off steam.!!!
God I hope you don`t work for the HMRC.......

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