Self assessment - feel sick. Please help

skintchick

After I was made redundant a year ago, I went self employed, but have mostly down work where I've been PAYE, so i've been paying tax. on the jobs I did where I simply invoiced, I put 25 per cent aside for my tax bill - there has been hardly any of that work, less than £1,000, so I expected, if anything, to be owed money.

I have filled in my self assessment form, and it says I owe them nearly £3,500!

I feel sick and weepy - I don;t see how I can possibly owe that much when I've been mostly PAYE.

Can anyone help? I don't think I'm going to be able to sleep tonight. I don't have that kind of money, I've worked hard this year just to stay afloat, including loads of weekends, and now I'm hit with this.

Does anyone have any idea what's happened and what I can do?

whatatwit

Have you added up your wages and tax correctly?

Have you entered the tax already paid through PAYE.

skintchick

It adds it up for you doesn;t it? I used the figures on my P45s/P60s. I really don;t know what I'm going to do if they want that money - it seems they are charging some at 40 per cent tax, which I am sure I shouldn;t be liable for as I've never earned enough for that - I've only had one job at a time really, apart from my occasional Saturday job, which pays about £150 per Saturday, I did about 13 last year I think. And that is PAYE anyway.

Is it possible I've made a mistake? How do I sort it? I wish I'd never gone self employed. I am so scared.

whatatwit

Ok, you are taking income from 6/4/2005 to 5/4/2006 aren't you?

If you add up your PAYE income, then take off your personal allowance, you are left with taxable income.
2090 is at 10%
not sure of the limit for 22%, but it is over 20,000.

Your saturday job, is that taxed at BR, ie all at 22%.

whatatwit

Even at 40%, if your self employed was only £1000, then you would only be looking at £400 on that.

skintchick

It's saying my taxable income is over 42k - but I've never earned that much!!

I don;t know what I've done wrong or how to sort it out

whatatwit

Have you filed the on-line return?

If not, start again.

Write it all down on paper first, and see what it adds up to.

It's possible you have entered something twice.

nearlyrich

I can't really help with tax advice but it's late and you probably won't find the problem tonight. My advice is make a cuppa or pour yourself a glass of something and forget it until morning, you KNOW you don't owe the taxman anything like £3500. I know it's easier said than done to forget it, but those SA forms are easy to get into a pickle with.

In the morning have another look and if it still looks wrong call the tax office for some help.;)

skintchick

I haven;t got time to do it again! I have to go to (PAYE) work tomorrow. I don;t understand what's happened. It's all gone wrong. I think maybe one of my former employers has given me the wrong figures. I will have to call the tax people tomorrow and ask them for help I think.

skintchick

I cross posted with you Nearlyrich. good advice. I'm going to go to bed and cry there. Maybe I'll sleep a bit. I feel so sick.

hilary1

You must have entered something wrong. But its not the end of the world.

Better to calm down as you know you cant owe that much if you have only earned £1000.

If you have done your return on line why not ring the tax office tomorrow, or better still go to see them, with your calculations on paper and talk it through with them.

I've always found them to be very helpful and not the nasty people sometime they are made out to be.


I am selfemployed and PAYE and I think you have entered your PAYE without showing your tax paid?

Everything will be ok.

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