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HMRC internal manual

Self Assessment Manual

Returns: individuals returns: manual tax calculations: individuals

There is no pre-printed Tax Calculation (SA302) form available for you to issue in a case where you must issue a Tax Calculation manually.

Where you have to manually calculate a taxpayer’s liability a Tax Calculator is available on the SEES menu in Excel.

Where you have to issue a Tax Calculation manually you should attach your calculation to a letter to the taxpayer.

Your letter should be written on the following lines

All cases

No revisions necessary:

  • Thank you for your [amendment to your] Tax Return which has now been processed without any revision. I enclose my tax calculation based on your [amended] figures

Revisions necessary:

  • Thank you for [the amendment to] your Tax Return. I enclose my tax calculation which includes the revisions listed [over page]. These are reflected in the attached calculation

Cases with liability

Balancing charge debit and payments on account due:

  • My tax calculation shows total tax due of £[XXXX.XX] for [Year]. This is due as follows

£[POA 1] due by 31 January [Year]

£[POA 2] due by 31 July [Year]

£[Balancing charge debit] due by 31 January [Year]

Balancing charge debit only:

  • Based upon my tax calculation your payment due for [Year] is £[Balancing charge debit] due by 31 January [Year]

Payments on account only:

  • Based upon my calculation your payments due for [Year] are

£[POA 1] due by 31 January [Year]

£[POA 2] due by 31 July [Year]

Balancing charge credit only: 

  • The overpayment of £[Balancing charge credit] based on your tax return will be repaid, if you have claimed a repayment, after I have settled any other HMRC debts you may have

PAYE case where underpayment is less than £3000.00 and amount to be coded 

  • I will notify you as soon as possible whether any tax you owe can be collected through your tax code

Where following years payments on account are due 

  • Based upon my tax calculations your payments on account for [Year] are

£[XXXX.XX] on 31 January [Year]

£[XXXX.XX] on 31 July [Year]

Where following years payments on account are not due 

  • I also calculate that you do not need to make any payments on account for [Year]

Where a claim to reduce payments on account has been made 

  • Your claim to reduce payments on account will be dealt with as soon as possible

In all cases

  • This is not a demand for payment. You should receive a statement nearer the due date for payment telling you how much to pay

Note: If the due date has already passed you should inform the taxpayer that any outstanding amounts are now due and payable

I will write to you again if I have any questions about your return

Let me know if there is anything you do not agree with or do not understand

My telephone number is shown [at the top of the page]

Where revisions have been made 

  • The following revisions have been taken into account in the Tax Calculation. The box numbers refer to the Tax Return sent in by you

Box [Box number] has been revised to £[XXXX] because [repair reason]

Where you want to include a Customer Service Message 

  • Please note [your own Customer Service Message]

Where there are provisional figures on the return 

  • I note that your return contains provisional or estimated figures. Please let me have accurate figures as soon as you can.

The liability calculation 

Use the tax calculator facility for the relevant year, available from SEES Full Tax calculators to create the calculation.