Self-employed bankcruptcy

twentytwenty

Hi All

I'm new to this site and would like to know if any sole traders out there can advise on filling in the bankruptcy form. My particular problem is with the question that asks how much tax do I pay. I can't get my head around the payment-on-account system. say I owe £4000 in January do I just put that? With payment on account arn't I actually paying this £4000 plus £2000 (first payment on account) making it £6000 in January + a further £2000 (second payment on account in July). If this is right it means I should be paying £8000 per year when in fact my taxable income of £20,000 in actual fact only works out at a tax to pay for that year of £4000. When it comes to filling in the bit about take home pay that means 20,000 less 8000 which equals £12,000 yearly, so my monthly take home pay (if iwas actually paid regularly which I'm not) would be £1000/per month and the amount that should be set aside for tax would be 666.66 per month. In the I&E is that money that should be set aside for tax part of my expenditure?

It's very confusing and I feel I may be misunderstanding this completley


If anyone can shed light on this it would be great!

richt71

I'd suggest you get professional help maybe via your local CAB.

twentytwenty

Thanks for your reply