Please help - a complete and utter novice!

glider3560

Income Tax:
Profit £10,300
Allowance £6,035 (assumption)
Taxable £4,265
@ 20% = £853

National Insurance Class 4
Profit £10,300
Lower Limit £5,435
Taxable £4,865
@ 8% = £389.20

This comes to £1242.20.How much tax does he owe for previous years?Also, I'm not an expert so may have missed something!

Anniek1969

He owes around £1200 between last years and when he became self employed which was in January. The bill for January to April was £385 so again it looks like they've not given him his allowance.

When he first became self employed he received his notice of coding and a couple of letters from them about PAYE. I thought it was just an error but it looks like he may still be in the system as PAYE.

glider3560

Anniek1969 wrote: »

He owes around £1200 between last years and when he became self employed which was in January. The bill for January to April was £385 so again it looks like they've not given him his allowance.

If he hadn't received his personal allowance, the tax would be £2060 + National Insurance.

Anniek1969

Yeah that's the figure I get too so I don't know how they've calculated it. I didn't realise he hasn't been getting his personal allowance deducted but they have all his information correct.

I suppose all I can do is submit these figures and then get him to contact them and query his personal allowance and how they've worked it out.

John_Pierpoint

Isn't this just half of the 10/11 tax & NI bill to be paid on account?