self assessment-personal allowance does not appear, nor payments on account made so ?

pajerochick

Hi
I am dealing with o/h tax return.
his first year as self employed was last year - tax return seemed fine in the end.
eg earning gross c£14.5K, they took into account personal allowance, advised tax to pay was c£1800 for 2010-11 plus a forward payment for 2011-2012 of c£900.00,so paid c£2714.
then a second forward payment for 2011-12 was paid in july 2012 (£900).
So in effect £1800 towards 2011-2012 has been made....we realised more could be due dependant on earnings for 2011-12.
now this year the gross is c£19120.34 for 2011-12.
but when we go through tax return online, ie before submitting it, it does not deduct the money paid so far, nor a personal allowance... The amount due is a lot higher than i would think due...
should WE be entering the amount paid so far for 2011-12 (£1800) in the "adjustments to tax due" section? (section 4)
and do WE need to enter the personal allowance - somewhere? because the tax due is coming in at £3399.55(ie based on full £19k, not that minus personal allowance) for 2011-12 plus the first forward payment of £1699.78 for 2012-13.so they want a total of £5099.32 now.
Or have we misunderstood it all totally?
very scared if so....

System

pajerochick wrote: »

Hi
I am dealing with o/h tax return.
his first year as self employed was last year - tax return seemed fine in the end.
eg earning gross c£14.5K, they took into account personal allowance, advised tax to pay was c£1800 for 2010-11 plus a forward payment for 2011-2012 of c£900.00,so paid c£2714.
then a second forward payment for 2011-12 was paid in july 2012 (£900).
So in effect £1800 towards 2011-2012 has been made....we realised more could be due dependant on earnings for 2011-12.
now this year the gross is c£19120.34 for 2011-12.
but when we go through tax return online, ie before submitting it, it does not deduct the money paid so far, nor a personal allowance... The amount due is a lot higher than i would think due...
should WE be entering the amount paid so far for 2011-12 (£1800) in the "adjustments to tax due" section? (section 4)
and do WE need to enter the personal allowance - somewhere? because the tax due is coming in at £3399.55(ie based on full £19k, not that minus personal allowance) for 2011-12 plus the first forward payment of £1699.78 for 2012-13.so they want a total of £5099.32 now.
Or have we misunderstood it all totally?
very scared if so....

Not sure what's going on with personal allowance, it should show near the top of the calculation (just below total income I think). Don't submit the return until you get to the bottom of that problem.

As for the payments on account, they will not show up in the calculation and you shouldn't enter then anywhere in the return.

The return only shows the amount of tax due for the year. Once submitted, this figure is passed over to your statement of account - where any payments you've made will be set against the tax due. When you are ready, submit the return and then log in to the online system the next day to check your statement of account.

nomunnofun

£3399.55 is spot on for 2011/12 on a profit of £19120. It would appear that the Class IV NIC has not been included in the op calculations.

Class IV - £19120-7225 = 11895 at 9% = £1070.55

Tax - £19120 -7475 = £11645 at 20% = £2329.00

Total £3399.55


Balance for 2011/12 due 31st January is £3399.55 minus £1800 equals £1599.55.

Payment on Account 2012/13 ALSO DUE 31st January is £1699.77.

Total due 31st January - £3299.32

Total due 31st July - £1699.78

System

pajerochick wrote: »

now this year the gross is c£19120.34 for 2011-12.
but when we go through tax return online, ie before submitting it, it does not deduct the money paid so far, nor a personal allowance... The amount due is a lot higher than i would think due...
should WE be entering the amount paid so far for 2011-12 (£1800) in the "adjustments to tax due" section? (section 4)
and do WE need to enter the personal allowance - somewhere? because the tax due is coming in at £3399.55(ie based on full £19k, not that minus personal allowance) for 2011-12 plus the first forward payment of £1699.78 for 2012-13.so they want a total of £5099.32 now.
Or have we misunderstood it all totally?
very scared if so....

Just below the self-employed profit figure in the calculation will be his personal allowance of £7475 and below that will be his taxable income of £11645.

You do not need to enter what he has already paid as any sort of adjustment as the calculation is just that a calculation. It is the total amount of tax and class 4 national insurance contributions due on that income in 11/12.
Once the return is submitted wait about 48 hours and go back in and view his account and that will show the payments he has already made for 11/12, the balance due for 11/12 (£1599.55) and first payment on account for 12/13 (£1699.77) which are both due to be paid by 31/1/13 and finally the second payment on account due 31/7/13 (£1699.77).

pajerochick

thank you all! - tax return now submitted.
a few learns for pajerochick....
1.) not to panic early - if i'd continued on a few more pages I would have seen the calculation broken down (doh)
2.) i understand - now!- that you can't see the "payments on account" within the tax return. you were all very helpful - now why couldn't the HMRC form have said that simpler? (I saw one comment but it was not in plain english and I msunderstood it)
so big thanks to you all for taking the time

System

I think most of the advice and guidance about self assessment is on their website rather than built in to the self assessment software itself.

Glad to hear you've got things sorted