Help - Paye

pinoyLiz

Hello, Can anybody help me re PAYE?

Can you pay your self-assessment tax return through PAYE and how does it actually work? My friend needs to file his tax and he hasnt received any self-assesment form but received a PAYE notice so I reckon he pay through PAYE but he doesn't understand how this work out?

Can I calculate his self-assessment for him? how would I inform the tax office re the payment? oh boy...find this complicated.

Any infos/ideas will be appreciated. Cheers!


Regards,
L

msf

Hi, I have a client who has rental income and is also employed.

They still receive a SATR each year, i complete the employment section and the land & property section for rental income.

I use PTP software, when i calculate the tax, options appear to how you want the tax to be paid (gives you an option to be taxed through PAYE) i tick that.

the clients Tax Code for PAYE is adjusted ie normal 604L, if rental income is £2100 then tax code adjusted to 394L ... this code will be used for current tax year until SATR is submitted, any tax paid through the year under PAYE is adjusted then and any over/under payments adjusted.

it may not exactly match your senario, but i hope it helps

Manaf

pinoyLiz

Thank you

Thanks Manaf,

It's a great help. It's sort of the same scenario really. He has dividends ,rental income and pensions.I don't use software for PAYE but I have a notice of coding from HMRC for the current tax year.Should I use this one or I need to have the same software you are using to calculate the tax more accurately?

His tax on pension is payed through his tax code.So can I use the same code to pay his other tax from other sources of income? Do we still need to post the SATR to HMRC. Thank you very much.

regards,
L

msf

Hi... If you are not doing many tax returns then purchasing the software may not be cost effective. There is no reason why you cant continue to work out tax manually.

The reason why i requested the client to pay rental income tax through her PAYE is for reasons of spreading the tax liability through the year and when you submit the return you might end up with a small payment or a refund??

I think what you are saying is the tax code has been adjusted for the pensions income but not yet for the rental income, you might have to either write or phone hmrc help line and get some further advice as to how.

You will still need to do the rental income accounts to work out taxable profits and this mostly likely will be different each year so the need to complete SATR i think is still required.

hope it helps..

pinoyLiz

Thanks

Thanks Msf I will look into it.