First time I need to pay tax (online) - please help.

Rich_T_2

Hi all,

I know how much I need to pay for tax year 08-09 (£2587) after working out income & expenses. This will be the first year I've had to pay anything as the previous year I earned less then the threshold.

I have a self-assessment on-line account but I'm finding some of the questions confusing. I was just wondering if you could give me any advice, i know it may sound cheeky but I would really appreciate any help.

One of the questions was:
Are you eligible for Class 4 NI?
Also, I just use a current account with my bank so the interest generated over the year was only £9. Do you think I should declare this? As one of the questions was 'have you received any interest from your bank'.

Any help will be much appreciated,

Rich_T_2

Any advice much appreciated

MonkeySaving?

I'd advise ringing up HMRC and getting your answers from there, they are very helpful when it comes to filling in tax forms.

fengirl_2

How much was your profit? If it was over £5035, then you need to pay class 4 NIC.
Yes, you need to declare your bank interest.

scottn

yes to declaring the £9 interest.
if you google class 4 NI you'l get a guide on what they are and what it means for you, typically, assuming you're self employed, you'll have to pay them based on your profit.

Rich_T_2

Many thanks for replies,

fengirl wrote: »

How much was your profit? If it was over £5035, then you need to pay class 4 NIC.
.

Profits were above, yes.

I'll declare the interest then, I see there are 2 options for taxed and untaxed savings. I imagine the interest in my HSBC current account should already be taxed right?

I do pay N.I but I thought this was class 2? I'll have to give hmrc a ring but do you mean to say I will need to sign upto class 4 too?

Thanks

Edit: Just read up on class 4 and I think I understand it a bit better now. I think I am eligible to pay too. I don't work anywhere else nor claim anything in benefits. I think I am right in saying class 4 is automatically worked out when you submit you tax return i.e. I don't need to sign up to anything like I did my class2 (direct debit)?