can someone even roughly give me an idea of what tax we would pay?

facingthefuture

re tax self assessment for 07-08 due 31 jan 09
husband earns self employed £17,500
me £90 a week (from hubbys business)plus £100 a month mystery shopping

We have 2 kids aged 5 & 8
no savings
no mortgage /rent (live in a family owned house that is due to be knocked down for really obvious reasons, worse than a squat- everyone that comes here thinks we are mad but we gotta get rid of our debts)

Our biggest expense is our 21 year old student son, total nightmare!!!!

So I know we will have to pay something mega now at the end of January - we have nothing put by ( a lot of bad creditors over past months), going to have to borrow it (will be selling like mad on ebay)

please can anyone give me an idea of how much we have to pay - why have I a mad notion it can be paid in 2 halves like also the end of June or something....I am so worried....can't sleep feel sick.

Please can anyone give me a rough idea of what amount I need to raise for the end of the month?:o:(

jorichste

I'm really no expert so if someone tells you different from me I would listen to them!!but I think, its roughly 3000. hth

facingthefuture

omg do you think? it sounds so much...will take my rings to jewellers, can't think of anything else - probably won't get much though...

jorichste

Have you applied for tax credits, sounds like you should get something.
If you call the IR about your tax bill they are usually really helpful, they only get tough if they are ignored. good luck

facingthefuture

Thanks, we were overpaid before so we get little. Wierd thing is we have never "lived it up" always seem to be struggling. Husband works a 60 hour week on average, ah well...theres always the lottery!!!(actually going a bit loopy) to be blunt I would just love a pair of warm dry shoes. Going to sell everything on ebay...ah well less clutter.

ceeforcat

Just a few queries on your initial post:

1) Your husband is self-employed and ‘earns’ £17500. Is this net profit, taxable profit or his ‘top line’? How have you arrived at this figure?

2) When did he start self-employment?

Stuart_Bellamy

It is hard to answer this without knowing all of the facts.

Do you have an accountant or are you trying the tax return yourself on line.

I would recommend that you see some one who will be able to make sure you are putting through all of the expenses that you are entitled to claim which will lower the tax bill.

As someone has already asked how long has he been self-employed and has he made any payments on account. He may have to pay them for the next tax year

It is possible to negotiate payment terms with the Revenue although you do have to jump through a few hoops so to speak.

If you need any help send me a PM.

Stuart Bellamy
www.bellamysteele.co.uk

tyllwyd

As the other posters have said, you need to give a bit more information to get an accurate idea.

If you just want a ball-park figure, you could try putting in your total income (profit) into the calculator at http://listentotaxman.com/ for the 2007/08 year.

I'm not an accountant of any sort so this is only my very very simplified explanation ... Has your husband paid any tax on account for that tax year? If he has been self-employed for a few years, he probably will have done. That's what you are thinking about when you say about paying tax in two go's, one at the end of January and one at the end of July. So at the end of January, he needs to pay the tax due for that year, less the payments on account that he's already made. He then needs to pay half of his bill as his first payment on account (ie if his bill for 07/08 was £1000, he'd need to pay £500 as his first payment on account), and then the other half in July. If he has paid payments on account, and his income has gone down compared to the previous year, it might even be that he's already paid more than he needed to.

On one of the other boards someone was worried about a similar situation, and they rang HMRC for help, and they were really helpful about spreading the bill over the next six months - so make sure you speak to them before you panic.

Mikeyorks

facingthefuture wrote: »

Please can anyone give me a rough idea of what amount I need to raise for the end of the month?

Why don't you know the figure? If you're struggling then the first thing you have to do is get the SA Return in so that you're aware of what you owe. If you don't do that then there will be a £100 late filing penalty on top ..... so that just makes a bad situation worse!

People on here will be only too pleased to help with a calculation. But that won't help your situation with HMRC who will only discuss deferred payment with you if the Return is filed. As they won't make an arrangement without a specific value.

But having ascertained the value ..... they will help. They're under instruction from the Govt to bend over backwards to help people struggling at the moment. And (shades of Foot and Mouth) have set up a dedicated payment line specifically for people in your position. So get the Return in (it doesn't affect the due date which remains 31st Jan) .... and then ring them here :-

http://www.hmrc.gov.uk/pbr2008/business-payment.htm

...... they will charge interest on payments made after the due date. So the higher initial payment you can make - the better. But by making an arrangement you will avoid the 5% Surcharge they would otherwise levy on any sum outstanding 28th Feb. But get that Return in ... you absolutely have to make that your priority!