Self-employed tax/IPA

sieve

Afternoon all,

OK so all the forms are submitted and printed, the fees are in an envelope and I am ready to go. But while sorting the forms out one of the questions made me wonder something.

On the forms it says "how much tax do you usually pay". I have to save about £590 for SA and with the SOA I have submitted (with the help of all of you - thank you) I have about a £10 surplus after the essentials. So if my OR agrees to that, I shouldn't get an IPA.

But if my tax goes to zero I will have a £600 surplus. So as I see it the OR has two options: make my tax zero and give me a 70% IPA or let me pay my tax normally, with no IPA.

Does anyone know what they might go for? I really want to avoid an IPA if I can.

Cheers,

(a rather uneasy) S

blind-as-a-bat_2

Just passing this on for FYP, she seems to be haveing dificulties posting

In answer to Sieve's post on MSE which I couldn't post because it said the site was still down (however I could read it just not answer it!)

Sieve
Did you put the tax expenditure on the SOA? I would have thought it is a business expense and has to be accounted before your income so I would have deducted that amount from income just like all other business expenses.

FYP

sieve

blind-as-a-bat wrote: »

Just passing this on for FYP, she seems to be haveing dificulties posting

Thanks blind & FYP.

Yes I accounted for the tax before stating my take-home, but it still asked me how much tax I pay per month on the forms. So I was wondering whether there was a possibility I'd be put on a nil tax code (or the self-employed equivalent) so I would then pay that surplus to the OR (or some other entity) instead?

Cheers,

S

fiveyearplan

I would put £0 on the forms but if asked (and only if asked - I wouldn't volunteer the info!) I would explain to the OR. It isn't a crime not to understand the forms. They don't really have time to delve into every detail but I wouldn't advocate lying just economical with facts!

sieve

fiveyearplan wrote: »

I would put £0 on the forms but if asked (and only if asked - I wouldn't volunteer the info!) I would explain to the OR. It isn't a crime not to understand the forms. They don't really have time to delve into every detail but I wouldn't advocate lying just economical with facts!

Welcome back FYP, thanks for the response

I guess I should stop worrying as it's too late now anyway (forms are locked and submitted) - hopefully my honesty won't be my downfall in this case!

Incidentally I listed my watch on the forms, I couldn't live with not listing it. If it's taken it's taken, no biggie, but if not, well I can legitimately keep it