Have hit a snag with a self assessment I am doing.
Client is semi retired, does some work on PAYE, and some as a sole trader.
Inputting their SA data, and it came up that £500 was owed from a PAYE Coding Notice 13/14, so it added this to their final tax bill page as 'Underpaid tax for earlier years from your tax code 13/14'.
However, looking at the Coding Notice, it says that the £500 will be collected by reducing their tax-free amount by £2,504 in 13/14. On the front on the Notice, it shows the £2504 as an 'Underpayment Restriction'. I took this to mean that they have paid the £500 through their PAYE?
The client called the HMRC tax helpline, and they have confirmed that it has been cleared, and nothing is due. So why is it still adding it onto their SA tax?
Do I need to change the 'Underpaid Tax' page to zero?
Think I may of actually answered my own question!
Looking at the Calculation page, I see that although the Underpaid Tax from earlier years has been added to the current years tax on profits due, there has also been about £500 more tax paid from his employment than last year; so the two do actually contra out! .Doh! Sorry about that.....
