No longer self employed - can I pay off the taxman?

x12yhp

Hi everyone,

After 18 months working self employed, I am now going to be working as on the big system again. Because of how it has all worked, I have not yet paid a big tax bill so this will be due in Jan. It will of course incorporate 10-11 but will also cover half of the subsequent year... so more or less will cover every penny I owe. However, I understand that I will also have to pay out again in June on the extrapolation that my self employment will continue. Since it will not, this is another £5k which I do not actually owe! How can I avoid this nuisance (it would mean that I would have to put off the purchase of a home until the taxman realised that I didn't owe this and paid it back - im sure meaning 6 months to a year of a delay)?

What I was wondering is whether there is some way to get the tax man to calculate exactly what I owe to the date my self employment ended (ie. monday) and I can pay the whole lot off in one go with no further debt... anyone know if this can be done?

Thanks

joedenise

Give HMRC a call and ask.

Denise

BoGoF

I assume you mean your 2011-12 payments on account. No they can't work out your 2011-12 liability now but you can make a claim to reduce the payments on account to what you think will be due.

x12yhp

Just right BoGoF - it seems silly that I would have to make a payment on account which I know will not be due. It would represent a bunch of paper work for them and would potentially put me in some difficulty as far as coming up with 6 months of tax which I would already have paid through the PAYE system.