A Payment A Day Part 5

musogirl295

£19.08 for me today please.

Can I pick somebodies brains please regarding tax self assessment and payments on account?

Did tax return several months ago. Was told I had to pay £1500 in tax and NI class 4's by end of Jan 2010 :eek: which I've been putting money aside bit by bit for. About £500 of that is for payment on account and then I have to make another £500 payment on account in July 2010. This is based on a gross income of about 11k.

I am planning to start my maternity leave on 1st April and I plan to be off until September. During this time I will be claiming the child tax credit (not much) and the basic rate Maternity allowance. When I start doing a bit of work in September, I anticipate that my gross annual income will be no more than about 4k.

Will I still have to make my July payment on account? Or can I inform them that my income is going to be seriously reduced? If I have to keep paying based on previous years income whilst I'm not earning much I'm going to be cleaned out!

Any help greatly appreciated!

Muso x

panambi

£123.06 for me today

Paulgonnabedebtfree

musogirl295 wrote: »

£19.08 for me today please.

Can I pick somebodies brains please regarding tax self assessment and payments on account?

Did tax return several months ago. Was told I had to pay £1500 in tax and NI class 4's by end of Jan 2010 :eek: which I've been putting money aside bit by bit for. About £500 of that is for payment on account and then I have to make another £500 payment on account in July 2010. This is based on a gross income of about 11k.

I am planning to start my maternity leave on 1st April and I plan to be off until September. During this time I will be claiming the child tax credit (not much) and the basic rate Maternity allowance. When I start doing a bit of work in September, I anticipate that my gross annual income will be no more than about 4k.

Will I still have to make my July payment on account? Or can I inform them that my income is going to be seriously reduced? If I have to keep paying based on previous years income whilst I'm not earning much I'm going to be cleaned out!

Any help greatly appreciated!

Muso x

You may need an accountant.
I don't know if this changed when self assesment came in but quite a few years ago, if you were in the first three years of business you could get the numbers averaged out over the first three years. If you can still do this, this could be particularly beneficial for you (I think) because a 4k income is below the threshhold for paying tax. If such a rule still exists, it is debatable as to whether it could be used to reduce a bill that has already been sent as opposed to reducing a future bill. Also, I think a 4k turnover would exempt you from having to pay NI. I don't know if maternity benefit counts towards taxable income or is ringfenced.

The taxman has a legal obligation to assess a situation impartially*. Horrible though it may sound,if you want to avoid an accountancy fee, your best option may be to book an appointment at the tax office and take all paperwork with you. Most of the time they are pretty reasonable. Even if you do get behind with your bill, they are usually OK about taking instalments (low interest but may be a 5% surcharge for any amounts more than a month late).

*An impartial taxman and an impartial accountant may not be exactly the same thing

Hopeful1

PurpleJellyFish wrote: »

Evening,

PaD for me today of £5

If no one else has volunteered, I don't mind doing the totals for October. I'm willing to do my bit

:T Thanks for volunteering, PurpleJellyFish. I'm sure we'll all appreciate it

lemma1968

£150 to HMRC!!!

Boo! Hiss!

PigginSkint

Hi All

Congratulations TIFTK on the new arrival! Welcome to the world little Oscar!

Today's PAD is £5.25 to Abominable Amex

joeyjimbles

musogirl
There is a chap on the mystery shopping thread who is very up on tax. I can't remember his name but if you read the first couple of pages he might be able to help if Paul's good advice isn't enough. I know that I looked into this when DS2 was born - but obligingly he turned up on April 5th and sorted the problem out for me! Also its worth just picking up the phone or visiting the tax office if there's one near you and asking them - I have found over the last two years that they are a lot easier to deal with than they used to be.

HTH

Moneytroubles_2

1.63 off the Very catalogue, rounding it down to £846 now!

macgirl

angelicmary85 wrote: »

Morning All!

Mac & Flower - If we didn't talk about farming, you lot would just talk about cats! :rolleyes:

Not me luv - I'm defo NOT a cat person - you'll never catch me indulging in "Cat Chat"!:D (apologies to all cat lovers:o)

Now if we were to talk, houses, clothes, shoes or make-up
(or even celeb gossip at a push - Will Katie and Peter get back together? )
- I'm there! - but virtual farms and cats you can keep :rotfl:

lemma1968

I have another £121.33 to MBNA to clear my cc. Apparently i will still owe about £1 next month to clear off any interest outstanding from the date of my statement to today!!!! :mad::mad::mad:

Very annoying!