Do I have to pay tax owed?

katmum

Hi
Really confused about tax issue and hoping someone may be able to advise.

Just completed my SE for 08-09 and it says I owe £400 in tax and to pay by 31st January. My husband seems to think that I can ask for this to be set against my 09-10 tax allowance which he says would result in my having to pay nothing as for that year I have been a stay at home mum earning zero and so would not have used up my tax free allowance. Is this really the case? If so it would be great as money is really tight for us, but if not I am already resigned to paying up and do have the money saved for paying the bill.

Thanks for any advice you can provide.

PlutoinCapricorn

Is the £400 correct? I think that as it is relatively small it would not include a payment on account for FY 2009-10 so you can't get that reduced.

I think that you can carry losses forward, and that if you are having trouble paying you can come to an arrangement, but have not heard about carrying forward a tax bill in the way you suggest.

dori2o

Sorry but this is not the case. The tax free allowance is to be used against income received in any one tax year. A lax liability cannot be offset against any unused tax allowance from a future or past year. Unless you have made a loss in 2009/10 and wish to carry that loss back to cover the profit made in 2009/10.

katmum

Thanks for your very helpful replies. Thought it was too good to be true! Good job I've got the money saved.