Self assesment now worrying me..anyone help?

gabyjane

Did my online return provisionally the other night, changed my expenses today and the payments are very confusing...
payment due £1858.28
1st instalment due jan 08 £929.14 then the same figure for july 08
but then it says total due by 31st jan £2787.42??
Please god tell me its mucked up and i dont owe nearly £3k..anyone help?
I can give all the figures if it helps more!

jem16

Figures would help I would imagine.

BrianM1975

I think you're confusing tax years and which amount relates to each.

If your outstanding tax bill is high enough you are required to make payments on account for the next tax year.

From what you post it seems that you have a tax liability for 2006/07 of £1,858.28. This will be due on 31 January 2008 less any payments on account you made for 06/07 in January 2007 ( and possibly a payment in July 2007).

For 2007/08 you will have payments on account of £929.14 on 31 January 2008 and £929.14 on 31 July 2008. Of course, if your final tax liability will be lower you can claim to reduce this payments on account on form SA303 but be careful as if you reduce them too much you will pay interest on any underpaid amount.

I suggest you call the tax office to explain it all as they will have all the important figures in front of them

gabyjane

jem16 wrote: »

Figures would help I would imagine.

ok didnt think ide earnt enough to have payed for next year but here goes...

income tax and class 4 national insurance conts £1858.28

income tax and class 4 national insurance conts due £1858.28

estimated payment due by jan '08' £1858.28

2006-2007 balancing payment £1858.28

payment on account by jan '08' £929.14 and july 08 £929.14

total due by jan '08' £2787.42

gabyjane

also if i pay £929 in jan 07 and again in july 07 wont i have payed well in advance for 07-08? or is this how it will go from now on? thanks i will call the tax office but as they are shut thought you guys would be very helpful!!

jem16

The figures that you would need to provide are gross income, tax paid(if any) and tax code.

gabyjane

jem16 wrote: »

The figures that you would need to provide are gross income, tax paid(if any) and tax code.

ok self employed £13199.26
employed £3479.53
no tax paid on any of that
tax code from work is 503L

Tarasam

Hi,
So in Jan 08 you need to make a Balancing Payment 06/07 of £1858.28
The instalments are your payments on account for the 07/08 tax year, this figure is estimated to be the same as your tax liability for 06/07, therefore your
1st POA will be due 31/jan 08 of £929.14 then the same figure for 31/july 08
So the total due by 31st jan will be£2787.42 unless you get us to reduce your POA's.
Kelly

gabyjane

kellyshay wrote: »

Hi,
So in Jan 08 you need to make a Balancing Payment 06/07 of £1858.28
The instalments are your payments on account for the 07/08 tax year, this figure is estimated to be the same as your tax liability for 06/07, therefore your
1st POA will be due 31/jan 08 of £929.14 then the same figure for 31/july 08
So the total due by 31st jan will be£2787.42 unless you get us to reduce your POA's.
Kelly

Ok so £1858.28 by jan and another £929.14 by jan and another £929.14 by july makes £3716.56? why does it tally up to £2787.42 if i have to make 3 payments?
Also why do we have to pay before we have earned? seems daft as id'e pay it after it was due anyway? just makes life difficult paying out money before youv'e earned it.

Hoddie_2

Ok so £1858.28 by jan and another £929.14 by jan and another £929.14 by july makes £3716.56? why does it tally up to £2787.42 if i have to make 3 payments?

Your January payment will be £3,716.56, which is the 05/06 balancing payment £1,858.28 plus first payment on account for 06/07 of £929.14.

Also why do we have to pay before we have earned? seems daft as id'e pay it after it was due anyway?

You don't. The first POA for 06/07 is due by end/Jan, which is just 2 months before the 06/07 tax year ends. The second POA is 3 months after the year ends, and any balancing payment a full 10 months after.

Most people pay through PAYE which taxes the income at the same time as it's earned, self-employed people actually benefit by having their money a lot longer. What you're paying 'in advance' of, is submitting your tax return.