Overpayment of Tax??

travellady

I was made redundant last July and then decided to go self employed, I was wondering how I know if I have overpaid tax or not for the year and if I would be entitled to a tax refund?? Especially as the self employment hasn't brought in what I had expected due to start up costs etc...

any help would be appreciated.

cheers

fengirl_2

You may well have, but you cannot work this out until you have completed your forst year's trading and know what your profit is.
After 6 April, the tax office will send you a self assessment for 08-09. You will complete this to show your earnings to when you were made redundant, plus the proportion of your profit to 31.7.09 which relates to 08-9 tax year. If a refund is due, this will be thrown up at that stage and HMRC will make the refund to you.
The trick is to get your 31/7/09 accounts done as soon as possible.

travellady

fengirl wrote: »

You may well have, but you cannot work this out until you have completed your forst year's trading and know what your profit is.
After 6 April, the tax office will send you a self assessment for 08-09. You will complete this to show your earnings to when you were made redundant, plus the proportion of your profit to 31.7.09 which relates to 08-9 tax year. If a refund is due, this will be thrown up at that stage and HMRC will make the refund to you.
The trick is to get your 31/7/09 accounts done as soon as possible.

THanks for that, pretty much looks like I wont have hardly any profit for this first yr trading.
So fingers crossed.