SA Tax Return - Payment Advice Please!

Quincifer

Hi all.

I submitted my SA tax return on 8th January and this was the first year since I started my P/T self-employed business that I have made a profit (yay!), however it also means that i now have a payment due of around £70 by 31st Jan, and I don't really have the money for it...

Someone told me I can offset this payment towards my next tax return - is this true? If there was an option within the tax return to do this I didn't see it (because I didn't even know it was there!)....if you can offset can it still be done even if I've already submitted my return? Otherwise, can you arrange with HMRC to pay it over a few payments or something?

Thanks in advance for any help!

notanewuser

Quincifer wrote: »

Hi all.

I submitted my SA tax return on 8th January and this was the first year since I started my P/T self-employed business that I have made a profit (yay!), however it also means that i now have a payment due of around £70 by 31st Jan, and I don't really have the money for it...

Someone told me I can offset this payment towards my next tax return - is this true? If there was an option within the tax return to do this I didn't see it (because I didn't even know it was there!)....if you can offset can it still be done even if I've already submitted my return? Otherwise, can you arrange with HMRC to pay it over a few payments or something?

Thanks in advance for any help!

No. They'll be wanting an extra £35 now and another £35 in July for payments on account towards next year's return as well.

Quincifer

An EXTRA £35 x 2? Or just £35 of it now and £35 of it later?

notanewuser

Quincifer wrote: »

An EXTRA £35 x 2? Or just £35 of it now and £35 of it later?

They will want the £70 you owe for 2011/12 now, plus £35 towards what you'll probably owe for 2012/13 by 31st January. Then in July they will want another £35 towards your 2012/13 bill.

That's unless you opted to have your tax code altered instead.

caz128

payments on account are not required when the tax due is below £1000

if you pay the tax late there will be interest and penalties, i cant post links but search "hmrc tax payment dates" for details

John_Pierpoint

As well as being in Self Assessment, do you have PAYE income?

If so next year you could allow the small amount of tax on your self employment profit to be collected via your PAYE code?

nomunnofun

John_Pierpoint wrote: »

As well as being in Self Assessment, do you have PAYE income?

If so next year you could allow the small amount of tax on your self employment profit to be collected via your PAYE code?

I think that option had to be chosen before 30th December.

John_Pierpoint

I too think you are right, but I could not manage to find the link that confirms it.

HMRC seems to be mastering their self assessment computer system - unlike 4 years ago; within a fortnight I have had my second company pension tax code corrected and notification of a modest refund on its way to my bank.

System

John_Pierpoint wrote: »

within a fortnight I have had my second company pension tax code corrected and notification of a modest refund on its way to my bank.

This is the SA autocoding being done now on receipt of a tax return and so it is done automatically without having the return sitting around waiting for processing staff to code it manually. It works well provided you don't make an error on your return as it will not be picked up by a human before the new code goes out.

Oh and this is the link you were looking for - http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#2

John_Pierpoint

Spot on:
Paying through your tax code

When you complete your tax return, you can ask for the tax you owe to be collected through your tax code if:

• you have income that is taxed under PAYE
• the amount you owe is less than £3,000
• you pay enough tax to collect the amount owed in one year
• you send your paper return by 31 October or your online return by 30 December

HMRC will try to collect the tax due through your code, but it's not always possible.