Need help with self employed tax return

PasturesNew

When you fill it out online it asks:
- how much did you turnover
- what expenses did you have (option to input one single figure, or break it down)

After that it works out everything for you, including the personal allowance - then allows you to view it all on the screen and check.

You can fiddle about with it loads of times before you commit and say SUBMIT.

Just do it and see..... once you start you aren't committed, you can save/stop and start again as often as you want. You can edit everything, go through and change your answers. Best thing is to chuck the figures in, see what you get, then see if you have queries because it doesn't look right.

PasturesNew

tyllwyd wrote: »

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

It includes it all, but there are a few ways to view the return once you've got the figures in - and on one of them it's all broken down so you can see what's what.

You also get a chance to reduce your "payment on account" if your income has changed for 2009/2010 and you think they've over-estimated it.

The Class 4 NICs threw me this year as I'd never needed to pay those before. Once you've earnt more than about £5k you start paying 8% on the amounts over that. Bit of an evil thing to find out if you're doing it yourself and expected things to be simpler

Anniek1969

I think i've finally got my head around it. When I went into my account it already had figures for 08/09 which were the same as the previous year. So I think the figure they have given me is everything that he owes from previous years and his payment on account for next year.

I think that's what it is anyway, have submitted it to them so will have to wait and see when the bill is updated.

System

I make it as follows -

Total profit = £23993 - (£9360 +£4322) = £10311

Taxable income @ 20% - £10311 - £6035 (Personal allowance) = £4276

£4376 @ 20% = £855 Tax due


NIC @ 8% = £10311 - £5435 = £4876

£4876 @ 8% = £390 NIC due


Total tax and NIC = £855 + £390 = £1245


If your figure is £1637.49 then either your figures have changed or you have indicated that there are student loan deductions due also.

There is nowhere to enter the personal allowance on the tax return. The calculator automatically includes it when working out your liability.

Anyway since the figure is over £500 HMRC assume that your profit in 2009/2010 is probably going to be something similar to 2008/2009 so they ask you to make 2 payments on account of half of the 2008/2009 liability, one by 31st january 2010 and the second by 31st July 2010.

So assuming you haven't already made 2 payments on account for 2008/2009 ( 31/01/09 and 31/07/09) HMRC will be expecting £1245 + (£1245/2) = £1867.50