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Self Assessment Figure Owed - Can't Work it Out! Help Me - Please!

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FieryP125 | 19:50 Mon 04th Oct 2010 | Personal Finance
3 Answers
I rent out a property and I submit a self assessment for this income ( I also work as an employee for a company )

My net rent receipts were £5210.

I presumed I would pay 20% tax on this - around £1042

My bill has come in for £1600!

The main thing I can see is underpaid tax for the year 09-10 (£491) but I paid this amount via my tax code - it is mentioned in my PAYE Coding Notice.

When I rang to query they said they have to show this, if they did'nt it would look like I was owed a refund - but they are including it in the total income tax due minus the amount I have paid from my employers in 09-10 shown on my P60.

She then said she would query it and said the extra amt is due to higher taxable employee benefits - this is true - but I will be paying this via PAYE from my tax coding notice! I just thought they would charge me 20% of my rental income - I am confused and annoyed.


It states I have to pay £2400 by January - the £1600 I owe PLUS anpther £800 for a payment for July 2011 - why???


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Does the rental income take you into the higher rate bracket? When did the rental income start and have you previously declared it and paid tax on it under Self Assessment? If you made your return online you would have a Tax Calculation to view, showing the make up of the figures.

The payment you have to make in January 2011 would be made up of £1600 balancing payment for 2009/10 plus £800, being half the estimated tax due for the year 2010/11.
The payment of £800 due July 2011 is the 2nd half of the estimated tax due for the year 2010/11.
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Why do I need to pay another £800? I didnt last year. What happened if I suddenly stopped the let - would they refund me the £800?

Rental income defo does not take me into the higher tax bracket.

My gross PAYE was £23125 and I paid £3811 tax

I had an P11 employer beenfit of £2745

Not sure where the £1600 has come from
Because anyone whose self assessment liability is over £1,000 has to pay half again in advance of next year's assessment and the same again in July so that in theory the liability has been paid before the return is sent.

Yes, if you stopped renting or made less profit on it next year you'd get a tax refund.

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