Argh, partner self-assessment - a right mess!

joolsybools

Right, I am trying to help my partner sort out his SA for 2011-12 by tomorrow's deadline...

There are a few issues I'm hoping for advice on:

He was self-employed for the whole of that year and part of this year.

1. He wrote to HMRC only last week to let them know that he is no longer self-employed as of a few months ago. However this has obviously not been processed as when he logs into the SA portal and puts all the info in he is still being asked for payment on account for 2012-13 taxes. Is there any way to 'dispute' this? (I also de-registered for this financial year and have NOT been asked for payment on account, presumably becasue I got into the system earlier).

2. He has already made some payments this year of about £600 towards tax/NI (not sure if he did this directly or if his old accountant did it). Anyway, when you get the calculation at the end of SA it says that this does not take into account any payments he has already made. Does anyone know how this all works? I am starting to wonder if the accountant has pocketed this £600 now! Surely it should be deducted as part of the SA? I can't see anywhere to put this info in apart from maybe adding it in as a note. Would it show if it was already in the system?

3. The earnings from this year 2012-13 will be quite a bit lower. I have heard something along the lines that you can let the taxman know this and the payments on account will be much less. Is there are form to fill in? I have a feeling there is and that there is/was also a deadline...please advise!

4. The total amount he owes (whatever the situation with the points above) is just beyond our means at the moment. What is the best course of action to take? I know he should probably write to the tax office. I have heard that they can be taken out of your PAYE earnings (he is employed now but not paying any tax for some reason). What is the best way to go about sorting this out. Help!

Stress!

I know that this shouldn't have all been left to the last minute and I am pretty sure he is in the process of learning a lesson too, so, in the nicest possible way, I really don't need judgement, I need help. I'm well aware that this should have been dealt with sooner.

Thanks.

dan.date66

Right, you are only one day away from deadline, so I will be brief;

1) There is no way their system would recognise the cessation of his self-employment yet. However, all you need to do is reduce the payments on account on the tax return - a separate page comes up just before the submission page asking if you would like to reduce them, click yes and work out a reasonable deduction - you can add a note in the box to say why you are doing it (cessation half way through next tax year). be careful, if you pay too little, they can charge interest on the tax underpaid.
2) They system does not calculate the deduction for payments on account already made - nothing to do with your accountant pocketing it (how well we are thought of!)
Again you can make this calculation - work out what he paid last year from his sa statements (his 2 payments on account) and deduct it from the "tax due for 2011-12" figure - that gives you the "balancing payment". Then add the first payment on account for 2013 (reduced if you have ticked the box), then that gives you the total due now.
3) see 1) above - only have to fill out a separate form if you are not doing the online sa, but you obviously are.
4) Pay as much as you can now. Any amount outstanding after tomorrow will attract interest. Any amount outstanding after end of Feb can also attract a surcharge. Pay what you can now,and try to pay it all by end of Feb. If you are not going to manage, contact HMRC. They won't have pity on you, but at least they will be aware of situation.

Good luck x

Skint_yet_Again

joolsybools wrote: »

Right, I am trying to help my partner sort out his SA for 2011-12 by tomorrow's deadline...

There are a few issues I'm hoping for advice on:

He was self-employed for the whole of that year and part of this year.

1. He wrote to HMRC only last week to let them know that he is no longer self-employed as of a few months ago. However this has obviously not been processed as when he logs into the SA portal and puts all the info in he is still being asked for payment on account for 2012-13 taxes. Is there any way to 'dispute' this? (I also de-registered for this financial year and have NOT been asked for payment on account, presumably becasue I got into the system earlier).

He needs to calculate the amount he thinks will be due for 2012/13 and reduce his payments on account. He needs to calculate the tax and class 4 nic. Be careful as he will be charged interest and possible late payment penalties if he underestimates the amount due and does not pay enough

2. He has already made some payments this year of about £600 towards tax/NI (not sure if he did this directly or if his old accountant did it). Anyway, when you get the calculation at the end of SA it says that this does not take into account any payments he has already made. Does anyone know how this all works? I am starting to wonder if the accountant has pocketed this £600 now! Surely it should be deducted as part of the SA? I can't see anywhere to put this info in apart from maybe adding it in as a note. Would it show if it was already in the system?

Payments on account for 11/12 will not show on the calculation. He needs to check his statement of account for the amount he has paid on account for 11/12
. If he registered to use HMRC Online Services and sent his return online, he sould be able to view his statements and a detailed breakdown of his tax history.

3. The earnings from this year 2012-13 will be quite a bit lower. I have heard something along the lines that you can let the taxman know this and the payments on account will be much less. Is there are form to fill in? I have a feeling there is and that there is/was also a deadline...please advise!

Fill in form sa303 here
http://www.hmrc.gov.uk/sa/forms/sa303.pdf
or do it online here http://www.hmrc.gov.uk/sa/understand-statement.htm
4. The total amount he owes (whatever the situation with the points above) is just beyond our means at the moment. What is the best course of action to take? I know he should probably write to the tax office. I have heard that they can be taken out of your PAYE earnings (he is employed now but not paying any tax for some reason). What is the best way to go about sorting this out. Help!

He would have had to submit his tax return by 30 dec 2012 to have any underpayment coded. If he cannot afford to pay he should phone the SA Debt Management line to see if he can come to a payment arrangement http://www.hmrc.gov.uk/payinghmrc/problems/cantpay.htm


Stress!

I know that this shouldn't have all been left to the last minute and I am pretty sure he is in the process of learning a lesson too, so, in the nicest possible way, I really don't need judgement, I need help. I'm well aware that this should have been dealt with sooner.

Thanks.

Hope this helps

joolsybools

Thanks very much to both posters.