Need help with self employed tax return

Anniek1969

I really need some help with my husbands tax return. He has a total income for 08/09 of £23993.00 with deductions of £9360 for taxi hire and £4322.92 for fuel.

This leaves him a total profit of £10300. Does he have a personal allowance to be deducted before they work out the tax?

Any help would be great.

Thanks

claire21

£6,035
is the standard personal allowance for 08/09 I believe

Anniek1969

I think you would only take £6035 from 08/09. I filled them in last year and didn't claim the personal allowance as I didn't know you could.

John_Pierpoint

If you were over charged for 07/08 you can claim a refund.
I find that even in these automated days, the clerks/system tends to pick up "obvious" mistakes and they put them right there and then.

Perhaps the two of you could offer each other some mutual support:

http://forums.moneysavingexpert.com/showthread.html?t=2240787.

Anniek1969

Where in the online form do you include the personal allowance?

Can't seem to find anywhere to add it.

I worked out myself that if his profit was £10300 his tax would be £853 would that be about right?

When I filled in the form it said his tax due was £1600.

PlutoinCapricorn

There is no need to input the personal allowance as HMRC know how much it is each year.

One point that affects your return is whether or not your husband has a job where he pays tax under PAYE: if he does, he may well have used up his PA there.

It is a good idea to make your own estimate of the tax to be paid well in advance.

Anniek1969

He doesn't have any other job so his self employed profit is all he earns.

Looking back at last years it hasn't taken his allowance off either. Total due for last year was over £1700 with a profit of around £12400.

tyllwyd

When it said the tax due, does that include payments on account? Also, does the tax due include Class 4 NIs?

Anniek1969

It includes Class 4 but not payment on account. Including the payment on account the want £2400.

PlutoinCapricorn

Ok, if there is no tax already taken via PAYE, you need to assume that the online calculator has taken off the Personal Allowance (£6,035 for FY 2008/09 and less for previous years) and taken 20% of the remaining profit (or 22% for anything before FY 2008/09).

£853 seems approximately right, but there may also be a Class 4 NI levy of 8% on profits over £5,435.

I think that you need to make a payment on account if your tax due is more than £500 (this is going up for FY 2009/10) of half the tax due.

Anniek1969

This is the figures the tax calculator gives

Total tax, Class 4 NIC and Student loan due for 2008-09 £1,637.49
First payment on account for 2009-10 £818.00

Payment due by 31 January 2010 This amount does not take into account any 2008-09 payments on account you may have already made.

£2,455.49

So they're almost double the figures I get. Can't understand it. I think there may have been a mistake when he first became self employed as he received a couple of letters mentioning his PAYE contributions. I just thought that the system would realise he was now self employed but it's looking like there might be an error still in the system.