Payment on account self assement tax......

Myles

Hi I was a self employed plumber! Iam just doing my tax return (late I know:o:o) for the years 2011-2012. this is tax on anything I've earned between April 11 and April 12 is that correct? According to the online calculator I owe £2166.18, they are then asking me for a further payment on account of £1083 bringing the total to £3249.
In July 12 I paid £650 2nd payment on account, to complicate things even further! From July 12 to present day I have been full time on the books for a firm PAYE. My question is what date of employment does the £1083 cover? I haven't been self employed since July 12 so do I still have to pay the 1083? Also in July 13 they are going to want another 1083 off me? .iam sorry that I've made this so complicated! Thanks Myles.

Skint_yet_Again

Myles wrote: »

Hi I was a self employed plumber! Iam just doing my tax return (late I know:o:o) for the years 2011-2012. this is tax on anything I've earned between April 11 and April 12 is that correct? According to the online calculator I owe £2166.18, they are then asking me for a further payment on account of £1083 bringing the total to £3249.
In July 12 I paid £650 2nd payment on account, to complicate things even further! From July 12 to present day I have been full time on the books for a firm PAYE. My question is what date of employment does the £1083 cover? I haven't been self employed since July 12 so do I still have to pay the 1083? Also in July 13 they are going to want another 1083 off me? .iam sorry that I've made this so complicated! Thanks Myles.

For 2011/12 you need to pay the balance of the total amount due (2166.18?) minus any payment on account made towards 2011/12 on 31/1/2012 and 31/7/2012. You should ensure you pay this within 30 days of 31/1/13 or you will incur late payment penalties. You will be charged interest as the balance was due on 31/1/13 and will also have to pay £100 late tax return penalty for 2011/12.

For 2012/13 you can estimate your liability and apply to have your payments on account reduced as you ceased self employment. You must try and be as accurate as possible otherwise if you underestimate you can be charged interest and potential future penalties.

The other option for 2012/13 is to pay the first payment on account (you will already have incurred interest on this as it was due to be paid by 31/1/13) and then file your next tax return for 2012/13 as soon as possible after 5 April 2013. This will then calculate the correct amount due and amend your July 13 payment accordingly

Hope that helps

Dazed_and_confused

You need to differentiate between what your liability is (shown when complete your return, 2166 for 11/12 per your post) and what you need to pay - this will show on your online account after you submit the tax return.

For 11/12 you seem to owe 866 (2166 less payments on account of 1300 (presumably if you paid the July payment of 650 you also paid a January 2012 payment of 650)

For 12/13 you do owe 1083 for each poa (one due 31/01/13 and one 31/07/13) but with your change of circumstances you may owe less as you weren't self employed all of 12/13.

You might want to consider paying the first poa in full but then do your next tax return ASAP after April and you will then know if you actually need to pay anything in July 2013.

If you submit your return now you can check your online account in a few days to check what needs paying.