Pay SA tax through your tax code

Chinkle

Just filled in my first SA online - phew it was nice and easy! Except one question I wasn't sure about. I understand that if you owe less than £2,000 you can have this collected via the following year's tax code, rather than pay by lump sum.

Firstly, is the option only available to those who have a PAYE job? Can I select this even if I'm entirely self-employed? In which case, how would the IR collect this? Would they alter my payment on account, or hold off until I submit my next SA and set it against that?

Secondly, what happens to the Class 4 NI profits - do I still pay these as a lump sum at end of Jan 2011?

Finally, if I can select to pay 09/10 tax owed via my tax code what happens if my income is below the personal allowance threshold on my next SA, does the previous year's tax owed then get written off against this?

Pennywise

Chinkle wrote: »

Just filled in my first SA online - phew it was nice and easy! Except one question I wasn't sure about. I understand that if you owe less than £2,000 you can have this collected via the following year's tax code, rather than pay by lump sum.

Firstly, is the option only available to those who have a PAYE job? Can I select this even if I'm entirely self-employed? In which case, how would the IR collect this? Would they alter my payment on account, or hold off until I submit my next SA and set it against that?

Secondly, what happens to the Class 4 NI profits - do I still pay these as a lump sum at end of Jan 2011?

Finally, if I can select to pay 09/10 tax owed via my tax code what happens if my income is below the personal allowance threshold on my next SA, does the previous year's tax owed then get written off against this?

If you're self employed and don't have an employment, then no you can't get the tax due collected through a tax code - as you righly mention, there's nothing to collect it against!

Murdina

The class 4 NIC is lumped with the income tax and is treated the same way ie it counts for working out payments on account and any balance is due on 31 Jan.

Your class 2 NIC you pay by direct debit quarterly - that is quite different.

Chinkle

Murdina, when you say lumped together do you mean they can also be paid via your tax code (if as Pennywise says I had a PAYE job to pay them against)?

MickS

My wife and I were until recently self employed but we are now employed paying PAYE. We have tax due on 31st Jan 13 from our old self employment. How or can I pay this through our new PAYE and is there a deadline to ask. HMRC are being really unhelpful and I can't find any info on their web site.

Thanks

Mick

[Deleted User]

I'd say start a new thread! :-)