{"id":16783,"date":"2024-01-24T15:09:41","date_gmt":"2024-01-24T15:09:41","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=16783"},"modified":"2025-09-05T16:07:15","modified_gmt":"2025-09-05T15:07:15","slug":"why-is-my-tax-bill-so-high","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/why-is-my-tax-bill-so-high\/","title":{"rendered":"Why is my tax bill so high?"},"content":{"rendered":"\n

One of the top 5 feelings as a tax-return-submitter has to be once you\u2019ve received the notification that it has finally, finally<\/em> been filed. The only thing that can potentially burst your bubble is the bill. Either you\u2019re elated because it\u2019s what you were expecting or there\u2019s the other option\u2026 the one that\u2019s common but unwelcome. Ugh, why is my tax bill so high? <\/p>\n\n\n\n

Why your tax bill might be higher than expected <\/h2>\n\n\n\n

Our best advice is to stay calm. Even if you\u2019re looking at the number and thinking, \u201chow is this right?!\u201d sometimes, it is. But then again, sometimes it isn\u2019t.  If it\u2019s the latter, it means a few different things could\u2019ve happened. <\/p>\n\n\n\n

1. You calculated it wrong<\/h2>\n\n\n\n

If you did, don\u2019t panic. Sometimes, you miss a calculation or misread something on your expense spreadsheet and suddenly you have a bill you weren\u2019t expecting. Our accountants are experts that make sure that every penny is accounted for (pun definitely intended). Don\u2019t forget to take into account changing NI rates and payments on account. Reach out for help if you need it – it\u2019s easier to change things as you go rather than having to redo your whole tax return. Use our calculators<\/a> to help you.<\/p>\n\n\n\n

2. You forgot to include your employment income<\/h2>\n\n\n\n

It\u2019s such a common mistake. Often when you\u2019re doing your tax return, you\u2019re not doing it for your main source of income or employment, which is taxed through PAYE <\/a>(most of the time). It\u2019s for the earnings that aren\u2019t declared that you need to inform HMRC about, so you can pay the appropriate tax. We\u2019re talking about you side-hustling, eBay-selling, \u00a3100k+ earning, money-making people. You know who you are. <\/p>\n\n\n\n

As important as it is to collate all the information you need for your tax return, it\u2019s just as important to include the income you receive from your employer, even if you\u2019ve already paid tax on it.  <\/p>\n\n\n\n

Don\u2019t forget, it\u2019s possible to be both employed and self-employed<\/a>. A tax return is a return on all<\/strong> of your taxable income from a certain tax year. Therefore, you need to include all sources of income, whether you\u2019ve paid tax on it or not. <\/p>\n\n\n

\"tax<\/div>\n\n\n

3. HMRC\u2019s records aren\u2019t accurate<\/h2>\n\n\n\n

Sometimes, it\u2019s HMRC\u2019s records that cause an issue. When your records aren’t up to date, you may be hit with a higher tax bill than necessary. If your employment status has recently changed, or there\u2019s some information about your situation you think you need to share with HMRC, go ahead and get in touch with them<\/a>. <\/p>\n\n\n\n

There are some fines and penalties if your information isn\u2019t accurate. To avoid these, it\u2019s better to reach out to them first and see what steps you need to take to correct the issue. You can have your employer resubmit your employment records with the right information to HMRC. Sometimes, HMRC might ask you to send them your P60s<\/a> directly. <\/p>\n\n\n\n

Keep a record of all your tax information as best you can so that if a situation like this ever arises, you\u2019ll be prepared and confident to tackle it head on. <\/p>\n\n\n\n

4. You\u2019re on the wrong tax code<\/h2>\n\n\n\n

Oh boy, wrong tax code. This one happens more often than you\u2019d think and sometimes it\u2019s hard to spot. Get familiar with the tax codes<\/a> if you\u2019re employed. If you think you\u2019re on the wrong one, you need to contact HMRC. Your tax bill is different depending on the code you\u2019re on (or supposed to be on) and this can heavily influence the number at the bottom of your tax bill. You can find your tax code on your payslip<\/a>, P60, P45<\/a>, or you can call HMRC directly to request this information.<\/p>\n\n\n<\/div> \n\n

\n
\n

If you\u2019re self-employed, you won\u2019t have a tax code unless you have income coming in from other sources, such as a job or pension. All you\u2019ll need is your UTR number<\/a> when you file your Self Assessment tax return to HMRC.<\/p>\n\n <\/div>\n<\/div> \n\n

\n\n\n\n\n

5. You have multiple streams of income that you didn\u2019t include<\/h2>\n\n\n\n

Multiple streams of income. Four beautiful words, as long as you remember to include them all on your tax return. When you have multiple streams of income, they count as one where HMRC is concerned. <\/p>\n\n\n\n

For example:<\/p>\n\n\n\n