Self assesment - when will i have to pay my bill ?

dvers2k

...... and other questions

Firstly - background - Im a self employed Taxi driver - i did my tax returns on line last year but the sums involved were very minor due to only a couple of months of working and i didnt pay any tax.

So this year i want to try and be on the ball and get my returns in sometime soon - the big question is though - how long after i have submitted my return will i have to pay my tax bill ?

Im gonna have a look round teh forums now and try and read some more as i want to find out what exactly i can submit as expenses - o if there are ny other axi drivers on here or anyone who can point me in teh right direction it would be greatl appreciated.

Dave

Mikeyorks

31st January (2010) is the prime date the tax is due. But if the tax for the year exceeds £1000 then you also have to pay 50% of that liability ('Payment on Account') against the tax becoming due the following year. And a further 50% by the 31st July.

Those 'on account' payments are then set against the liability due the following 31st Jan (2011).

dvers2k

Mikeyorks wrote: »

31st January (2010) is the prime date the tax is due. But if the tax for the year exceeds £1000 then you also have to pay 50% of that liability ('Payment on Account') against the tax becoming due the following year. And a further 50% by the 31st July.

Those 'on account' payments are then set against the liability due the following 31st Jan (2011).

Thanks for the info - though not sure i undertand it

So - if put my return in tommorrow and it leaves me with a tax bill of 2k for april 08 - april 09 - What would i have to pay and when would i have to pay it by ?

also - can you et up a DD or similar with tax office to pay x amount of month or will you be expected to pay the full amount within a set time ?

sorry a bout the questions - all new to me.

Dave

Mikeyorks

dvers2k wrote: »

also - can you et up a DD or similar with tax office to pay x amount of month or will you be expected to pay the full amount within a set time ?

Post #4 clarifies your question regarding what you have to pay / when.

You're normally expected to pay by the due date. But if you're going to struggle .... you might be better getting in early. They've just rolled out a new online DD system .... and (as you sound to be up to date at the moment?) .... this (Budget Payment Plan) might help?
http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#3

Better still ..... start putting a reasonable sum away in an account that generates interest? At some time in the future it's intended the Payment Plan will either add interest or straddle the due date (a bit like paying your TV Licence by monthly DD) But at the moment there's no financial incentive ... so your own Savings account - in advance - is the best way.

dvers2k

Cheers for that Jimmo - much appreciated

dvers2k

Cheers for the info and link mikeyorks- im not expecting to struggle with payment but jut trying to think ahead and plan - the svings account does sound a much more ensible idea though thanks