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Receiving your tax calculation

You'll get a tax calculation if:

• you sent in a paper tax return and asked HM Revenue & Customs (HMRC) to work out your tax
• you sent in a paper tax return and calculated the tax, but HMRC thinks you made a mistake 
• you sent in an amendment to a paper or online return

You won't receive a tax calculation if you filled in your return online because an online return calculates your figures for you.

Why it's important to check your tax calculation

It's important to check the figures and let HMRC know if you disagree with them because they'll: 

• form the basis of the demand for payment - your 'Self Assessment Statement' 
• be used to adjust your Pay As You Earn (PAYE) tax code next year if you requested this on your Self Assessment (SA) tax return

Tell HMRC about any queries you have before 31 January so you can pay on time - or you may have to pay penalties and interest.

• Tax return deadlines and penalties - find the latest dates

Your tax calculation covering letter

The covering letter tells you:

• the tax year the calculation refers to 
• the 'Total Income Tax due' - this comes from the accompanying calculation page 
• how and when to pay 
• about any changes we have made to the figures on your tax return

If you don't agree with the figures contact an HMRC Office using the number on your tax calculation.

Understanding the entries on the tax calculation pages

Look at each entry in your calculation to make sure you fully understand it.

Income received (before tax was taken off)

This lists all your taxable income for the year - including the gross amounts before tax was deducted for things like:

• savings interest 
• dividends - the gross amount includes the 10 per cent tax credit 
• taxable benefits and expenses you received through work, minus any allowable expenses you can claim

The tax deducted from your income will be set off against your final tax bill.

Total income on which tax is due

This is the income you received - explained above - minus your tax-free personal allowances and any other allowances you're entitled to.

How have I worked out your Income Tax

Different types of income are taxed at different rates. Your taxable income will be shown split into these different types.
The tax rate that applies to each different type of income varies depending on:

• how much of each type you get 
• the different tax bands that apply

If you're a higher-rate taxpayer (40 per cent) and you gave to charity using Gift Aid, you only received basic rate tax relief (22 per cent up to 5 April 2008 and 20 per cent thereafter) when you made the donation. The tax calculation adjusts the point at which you pay higher rate tax to give you the extra 18 per cent tax relief.

• Tax rates and tax bands - the latest figures Opens new window
• Capital Gains Tax (CGT) - find out more

Income Tax charged

This is the total Income Tax chargeable on your income received during the tax year.

Total Income Tax due

Any tax that's been deducted through PAYE or at source will be deducted from the 'Income Tax charged' figure to give the figure for total Income Tax due.

• View helpful information on the stages of the calculation (PDF, 42K) Opens new window
• Help with PDF files

Other entries on the calculation

Other entries on the calculation may include:

• Class 4 National Insurance contributions (NICs) - if you're self-employed 
• Capital Gains Tax 
• student loan repayments

When and how do you pay the 'amount due'?

The amount due for the period is shown on the front page of tax calculation covering letter. This figure won't include any tax you've already paid 'on account' or any tax outstanding.

If the tax calculation relates to the last tax year

HMRC sends you a separate Self Assessment Statement telling you what to pay and how and when to pay it.

The figure on the Self Assessment Statement will take into account payments already made and outstanding amounts owed.

HMRC may not always be able to get a Self Assessment Statement in time for you to meet the 31 January deadline. If this happens look at your previous statements to see what payments you've already made towards the amount shown on the tax calculation. You'll also need to check if there's any tax outstanding from other tax periods. Then you can calculate what tax you owe and make the correct payment.

• Understanding your Self Assessment Statement
• Tax return deadlines and penalties - find the current dates

If the tax calculation relates to an earlier tax year

If you've received a tax calculation for an earlier tax year it may be because HMRC has discovered an error. You might have to make a payment right away. Check by referring to recent statements. If you file online you can check your statements and any amount owed.

• Understanding and using Self Assessment Online

If you disagree with your tax calculation or payments on account

If you disagree with your tax calculation, contact the number at the top right-hand corner of your calculation, quoting your unique taxpayer reference (UTR). If you think your payments on account are too high you can claim a reduction using form SA303.

But tell HMRC if your income increases because your payments on account should reflect this - if you don't you will have to pay interest and may have to pay penalties.

• Read form SA303 Claim to reduce payments on account Opens new window