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The SA302 form explained

SA302 is the form that HMRC sends to those who have completed a tax return on paper and sent it in before the deadline of 31st October. You might also receive an SA302 form if HMRC doesn’t agree with the calculation you made on your tax return, or if you have made any amendments to what was written on it. Those who complete their returns online get an automatic tax calculation worked out there and then onscreen, whereas SA302 shows your calculation printed out on paper.

HMRC sends a covering letter along with the SA302 form containing information regarding the tax year to which the calculation refers, the amount of tax that is due, payments that need to be made on account the following year, and any amendments that HMRC may have made to the original figures provided on the tax return.

After checking the figures on your calculation it is important to contact HMRC straight away if you think they are in error, unless you are in a position to be able to amend your tax return. If the incorrect figures are left to stand, you could end up paying the wrong amount.

What does the calculation involve?

Your calculation shows the total taxable income you received during the tax year. This income can include pay, or profits if you are self-employed, any taxable benefits and expenses, dividends and interest on savings.

Once any tax-free personal allowance and other deductions that you may be entitled to have been subtracted from your total taxable income, this leaves the next important figure on the form – the total income on which tax is actually due. The amount you owe will have been calculated from this, and the resulting figure is shown on the SA302 form, together with the different rates of tax that have been applied to arrive at the correct total. Rates will vary according to the level of income, with what is known as higher rate tax being applied above a certain amount.

Finally, the total due to HMRC will be shown on the form. This takes into account tax you may have paid already through the PAYE system, any refunds you may have already received and tax deducted from savings. The total sum due may not be the same as the amount you are asked to pay, because it doesn’t take into account payments already made, or amounts owed for earlier years. A follow-up statement will be sent to inform you of the final figure regarding tax you owe or are owed.

Who might need to see an SA302 form?

Sometimes, you might be asked to provide an SA302 form if, for example, a bank or any other organisation that is lending you money wants to see proof of your income. For those who have not been sent a paper form because they completed their tax return online, it is not necessary to request that an SA302 is sent out. Instead, a tax calculation can be printed out directly from the online return.

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