SE Tax help - dates due

Lizzieb151

Hi there,
My husband is a soletrader and for the past 2 years we haven't had to pay any tax as the earnings were too low, this year however things are taking off and he need to pay tax. He usually does his tax return soon after the 5th April aso it's done and out of the way - when he reports in April for the tax year 2013/2014 when will the tax be due to be paid?
Also he may have to pay the interim tax against next year aswell which I thought was due in May.
If someone could claify the dates then that would be great thanks

Also with the business taking off he wants me to work on it with him, do I register as self employed aswell as didn't really want to go down the employer route just yet. Thanks

purdyoaten

Lizzieb151 wrote: »

Hi there,
My husband is a soletrader and for the past 2 years we haven't had to pay any tax as the earnings were too low, this year however things are taking off and he need to pay tax. He usually does his tax return soon after the 5th April aso it's done and out of the way - when he reports in April for the tax year 2013/2014 when will the tax be due to be paid?
Also he may have to pay the interim tax against next year aswell which I thought was due in May.
If someone could claify the dates then that would be great thanks

Also with the business taking off he wants me to work on it with him, do I register as self employed aswell as didn't really want to go down the employer route just yet. Thanks

It really depends on what the tax bill is for the year to 5h April 2014. If it is less than £1000, he would have to pay just this amount on 31st January 2015.

If it is, say, £1800 he would have to pay this on 31st January 2015. In addition he would make payments on account of the following year of £900 on 31st January 2015 (same date) and 31st July 2015.

zygurat789

Lizzieb151 wrote: »

Hi there,
My husband is a soletrader and for the past 2 years we haven't had to pay any tax as the earnings were too low, this year however things are taking off and he need to pay tax. He usually does his tax return soon after the 5th April aso it's done and out of the way - when he reports in April for the tax year 2013/2014 when will the tax be due to be paid?
Also he may have to pay the interim tax against next year aswell which I thought was due in May.
If someone could claify the dates then that would be great thanks

Also with the business taking off he wants me to work on it with him, do I register as self employed aswell as didn't really want to go down the employer route just yet. Thanks

Tax year 2013/14 is due by 31/01/2015. Since you have made no on account payments it will ALL be due on that Date. Also if the tax liability is large enough you will have to make the first on account payment for 2014/15 on 31/01/2015, the same day. This will be half of the total liability for 2013/14, the other half io due 31/07/2015 and if, when the accounts are done there is any more to pay then it will be due by 31/01/2016.
Is the intention that you both become partners in the firm?

Lizzieb151

Thank you - that is what I thought.
Am I able to make one off payments into that tax account during the year so that come January the tax is already paid off.

The plan from is from April we will be making monthly direct debit payments but I would like to ensure that he has paid any tax due asap?

The long term plan would be to make the business ltd but in the meantime he needs me to do paperwork etc etc as he is out most of the time so on a part time basis I would work for him.

purdyoaten

Couple of points:

1) There is no advantage in paying the tax man early. Could you not put the money in a savings account and settle up next January?

2) If you work for your husband as you appear to do your husband can legitimately pay you a wage for so doing. He can pay you up to £147 per week without any tax or NIC implications for you in this tax year and claim as an expense. There would be no requirement to register as an employer with HMRC for such an amount. However, the wages must actually be paid to you - a book entry at the end of the year will not suffice. Be careful that the wages are reasonable for the job and that minimum wage regulations are taken into account (£6.31 per hour I believe).

A payment of £149 or above to you would require registration with HMRC as an employer but it would mean that you would pay NIC and receive appropriate credits towards your state pension.

zygurat789

Lizzieb151 wrote: »

Thank you - that is what I thought.
Am I able to make one off payments into that tax account during the year so that come January the tax is already paid off.

The plan from is from April we will be making monthly direct debit payments but I would like to ensure that he has paid any tax due asap?

The long term plan would be to make the business ltd but in the meantime he needs me to do paperwork etc etc as he is out most of the time so on a part time basis I would work for him.

What is your personal tax position at the moment and do you now, or do you think you may in future, use an accountant?

Lizzieb151

Thank you - we can put the money away - he has a seperate bank account for tax just wondered if there was any benefit to it.
I didn't realised that my husband could pay me like that - would it need to show as pymt from business bank account into my bank account? And what paperwork would I need?
I was hoping that he wouldn't have to register as an employet yet and that would be why I would go self employed as we also need 1 other on a part time/casual basis.

zygurat789

Lizzieb151 wrote: »

Thank you - we can put the money away - he has a seperate bank account for tax just wondered if there was any benefit to it.
I didn't realised that my husband could pay me like that - would it need to show as pymt from business bank account into my bank account? And what paperwork would I need?
I was hoping that he wouldn't have to register as an employet yet and that would be why I would go self employed as we also need 1 other on a part time/casual basis.

I don't think you should go self-employed working as a bookkeeper for your husband, that would be asking for trouble because you are obviously employed.
The areas you are delving quite deeply into are complex and need you to reveal more information.

purdyoaten

Perhaps you take not fully appreciate the following in my last post?

He can pay you up to £147 per week without any tax or NIC implications for you in this tax year and claim as an expense. There would be no requirement to register as an employer with HMRC for such an amount.

Lizzieb151

Thanks for your messages - my position is at the moment is a stay at home mum. Our youngest has just started school hence why we are looking at me doing work for him - up til now he does it all.
I would not employed by him to be his bookekeeper - he runs a removal company and I would be out in one of the vans fulfilling a small contract he has just picked up and preparing invoices and quotes and arranging visits and possibly networking. I am just looking at how he goes forward from here as up til now he has done it all but now needs another person to go out with him as the jobs are getting bigger.
As he is getting bigger now - he would be looking at getting an accountant to do the end of year returns.

I think I understand your meaning of him paying up to £147 per week but what would be the paperwork associated with that if it can't be a just a book entry. That amounts to almost 23 hours a week at minimum wage.

zygurat789

Lizzieb151 wrote: »

Thanks for your messages - my position is at the moment is a stay at home mum. Our youngest has just started school hence why we are looking at me doing work for him - up til now he does it all.
I would not employed by him to be his bookekeeper - he runs a removal company and I would be out in one of the vans fulfilling a small contract he has just picked up and preparing invoices and quotes and arranging visits and possibly networking. I am just looking at how he goes forward from here as up til now he has done it all but now needs another person to go out with him as the jobs are getting bigger.
As he is getting bigger now - he would be looking at getting an accountant to do the end of year returns.

I think I understand your meaning of him paying up to £147 per week but what would be the paperwork associated with that if it can't be a just a book entry. That amounts to almost 23 hours a week at minimum wage.

Yes it can


Your status as self employed but working for only one person, your husband, is very questionable and highly likely to be successfully attacked by HMRC. You don't want that and you don't want the questioning that goes before it.
It is most usual to becomp to £147pw (£149 from April ) If your husband is still paying tax then either become an employee of or a partner in the firm. As an employee your income uis limited to a "reasonale" amount, as a partner it is not. Being a partner means you are self employed and there are 3 tax returns, the extra one being for the firm.