Tax idiot

dc1980

I need some advice. I am trying to fill in my self assessment form on HMRC and tying myself in knots.

I was paid as a freelancer for a short period in 2010 before that company took me on as staff. I need to pay the tax on that period of income, but when I used the self assessment form on the HMRC website, I get bogged down in the part where I enter the total I was paid.

I wasn't paid as a business, just paid as myself, and not having any 'business expenses' as such, the monthly money I was paid for that period then gets considered as clear profit and the final calculation for the tax on that period seems far too high as a result. Do I even need to fill this form out in this way?

So confused and very concerned as my savings set aside for this tax bill don't cover the amount his assessment tool is spewing out.

Any advice anyone?!?!?!

jennifernil

It will be 20% tax on the total, or 40% if you are into higher rate tax, possibly plus some extra NI.

How much had you expected to pay?

pjclar02

The calculator may be estimating advanced payments on account for 2011/12 which is why the tax liability is higher than you are expecting. Depends on the sums involved, but this could be one explanation.

Does the calculation you have distinguish between the balance owing for 2010/11 and the advance payments due for 2011/12?

jennifernil

If you are being asked for "payments on account", and did not have this source of income in the following year, you can request to reduce the POAs to nil.