Self assessment c&£k up

Cidersid

Hello out there

I wonder if some one can help me. After selling the goodwill of my business in 2008 and waiting for my debts and contracts to finish, I recently took my final dividend payment in the tax year apr 2011 of around 56k. I was also on a paye of another company and still am, of which I was paid 21k for the year ending apr2011.

I've just received my SA statement:

31/1/12 balance due for year 10/11. 8k

31/1/12 1st payment on account due for year 11/12 4k

Sorry figures ain't exact all my accounts are in my desk at work.

I was under the impression I only had the 8k to pay as the 4k was already taken from paye payments for the year? Or have made a mess of my self assessment??

Thanks for reading I hope this makes sense? I can't log on to tomorrow cause all my passwords are at work.

Mikeyorks

Did you complete the employment pages - showing the PAYE income / tax deducted?

However - relatively academic (to your question) as payments on account only get automatically quashed if the PAYE income is 80% + of the total income. Which it isn't.

If you've signalled a cessation date for the self employment and nothing will be due for 11/12 ....... then just apply (SA303 - can be done online) to reduce the POAs to £zero?

But watch you may still need to file next year if you get a filing notice.

jennifernil

HMRC are assuming you will have the same income again next year, you need to tell them that you will not, if that is indeed the case. Then you would not need to make POAs.

Cidersid

Thanks for your quick replys.

I can confirm I ain't going to earning no more than 22k on paye, so quickly do I need to just contact the tax office or can I do it online? I thought tax was meant to easy ha ha?

BoGoF

Assuming you have an online account then you can reduce your payments on account online.

Mikeyorks

1) Did you provide a cessation date of self employment on the Return?

2) Did you file employment pages for 2010-11? As that is where the 80% comes from.

If it's appropriate to do so - you can reduce the payments on account via your SA online.

pjclar02

Hello there

This issue may be resolved already - however Mileyorks is talking about self-employment, but the OP doesn't seem to state anywhere that he is self-employed, he drew dividends from a company, and therefore the queries about cessation are irrelevant.

If you do not have an online account to reduce your payments on account then you can use the form at the link here:

http://www.hmrc.gov.uk/individuals/fagsa303.shtml

Just out of interest, if the goodwill has been sold and the company has ceased trading, have you looked into the possibility of applying to HMRC for capital gains tax treatment on the distribution? This could save you around £3k in tax.

Hope this helps.

Cidersid

Thanks for the info pj!

I have filed my self assessment online, and have an online account, does that mean I can go and change it? Even after I have filed it. I did it back in August and it took them till now to send me a statement!

Again thanks

Mikeyorks

Cidersid wrote: »

does that mean I can go and change it?

Posts #2 / 5 / 6 and 7 all confirm that. Except you're not 'changing it' - you're simply reducing the payments on account because the untaxed income will be significantly lower when you next file?

pjclar02

When you say "change it", do you mean to take advantage of the capital gains tax treatment I mentioned? If so, I would recommend you speak to your accountant before making this amendment, as it is not straightforward.

Cidersid

PJ

Again thanks for the info, i have a meeting booked with my accountant next ref the cgt.

But in the meantime i've logged on and reduced my poa's to 00.00 for apr 2012. Very quick and easy to do

How long b4 the hmrc update this on my statement? I did it on Wednesday but it hasnt changed when i logged on tonight? or am i asking a little too much for it to be done that quickly?

thanks