The Tax Adjustments page of the Self Assessment tax return
This article provides a summary of the 'Tax Adjustments' page of the Self Assessment tax return and the relevant information required to complete it.
Please note that FreeAgent's Self Assessment functionality won't be available if you have an unincorporated landlord account or if you're preparing your accounts using the cash accounting basis.
You need to make sure that you're happy with the figure for tax and class 4 National Insurance that FreeAgent has worked out for you. You can see more details of this on the 'Your Tax Breakdown' page.
If you need to adjust this figure, for example if you've paid too much or not enough tax through PAYE, you can do that on the 'Tax Adjustments' page. For more information, speak to your accountant or HMRC, or see their guidance.
Remember: FreeAgent cannot advise you on how to fill in your tax return correctly, nor can we check your figures to see if they are correct, unless they have been calculated by the software. We are not authorised by HMRC to provide accounting or tax advice. If you are in any doubt as to whether a figure on your tax return is right, you need to speak to your accountant or to HMRC.
Underpayments or overpayments through PAYE
If you have a PAYE code then you may receive a 'Notice of Coding' from HMRC if they change your tax code. On this notice, you might find that HMRC has given a sum of tax that you underpaid for the previous tax year, or before.
Your 2021–22 tax code may have been adjusted to collect tax you owe for previous years. If HMRC has made an adjustment which shows on your 2021-22 PAYE Coding Notice as 'amount of underpaid tax for earlier years', you will need to enter this amount into box 7. Alternatively, if HMRC has made an adjustment that shows as ‘outstanding debt’ on your PAYE 2021-22 Coding Notice, you will need to enter this amount into box 9.
If your circumstances changed during the year up to 5th April 2022 and your 2021–22 tax code was reduced, you may have paid too little tax for the time before your code was reduced. To see if this applies to you, look for the message: "Our estimate of the underpayment for the earlier part of the year is £xxxxxx. We will normally collect any underpayment through your Self Assessment return. This will be calculated when your tax return for the year is processed." on your 2021–22 PAYE Coding Notice from HMRC.
If you are happy to pay this underpayment with the rest of your Self Assessment tax, leave this box blank, but if you asked HMRC to collect this tax through your tax code for 2021–22, enter the amount into box 8.
Payments on account
You may find you have payments on account to make. FreeAgent works these out for you and fills in box 11 with the amount of your first payment on account. Be aware that this is an amount you have to pay as well as the tax due for this year, so this figure is in addition to the total tax due that you see at the top of the return pages.
HMRC allows you to reduce your payments on account if you know your profit for 2022/23 will be less than your profit for 2021/22 (if you've lost a big customer, for example). You can claim to reduce your payments on account on your tax return by choosing 'Yes' and then entering the reduced amount in box 11. Explain why you are making the claim in box 17 of the 'Any other information' section.
Be careful, though, because if you reduce your payments on account too far, HMRC will charge you interest for late payment of tax.
Blind Person's or Married Couple's surplus allowance
If your spouse or civil partner didn't have enough income in the tax year to 5th April 2022 to use up all (or any) of their Blind Person's or Married Couple's Allowance, you can ask for the surplus to be transferred to you. Fill this in here in box 12 or 13 as appropriate.
Adjustments to tax due
Your accountant might direct you to enter an adjustment in the 'Adjustments to tax due' section.
Any other information
Finally, enter any additional information that you think HMRC might need in the 'Any other information' section .
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