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SA Tax return is over double the amount of last year!

Okay so I have been fully self employed for just over 3 years and have always completed my SA online. Admittedly I have left it a little late this year (filing 2012-2013) and have just had a heart attack when they've worked out my calculation.

My last tax return asked for £880.03

I have increased my annual net amount by aprox £2666, but this year they are asking for £1,769.34!

I'm in shock as to how such a small increase can double the tax due.

It's also stating that I must pay a first payment on my 2013/2014 tax return by the 31st January - it's never told me I had to do this before.

Can anyone shed some light on this?
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Comments

  • What was your profit last year and this year?
    Did you have any other income in either year?

    To help you, we need the figures.
  • FeistyFidget
    FeistyFidget Posts: 1,368 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    What was your profit last year and this year?
    Did you have any other income in either year?

    To help you, we need the figures.

    Thank you :)

    2011-2012 1 business

    gross £20769.41
    net £11,319.43

    2012-2013

    business 1
    gross £1424
    net £677

    business 2
    gross £32897
    net £13374
    [/COLOR]
    2024 Challenges
    Live in the moment more and appreciate the small things
  • purdyoaten
    purdyoaten Posts: 1,159 Forumite
    On first glance I would say that your bill for 2012/13 is around £1180. accordingly you would be liable to make payments on account for next year, £590 on 31st January 2014 and the same again on 31st July 2014. Total due in January would therefore be £1770. This is because your bill now exceeds £1000.

    But, to be sure , we need the figures!
    There are 10 types of people in the world - those who understand binary and those who do not. :doh:
  • purdyoaten
    purdyoaten Posts: 1,159 Forumite
    edited 16 January 2014 at 6:27PM
    Thank you :)

    2011-2012 1 business

    gross £20769.41
    net £11,319.43

    2012-2013

    business 1
    gross £1424
    net £677

    business 2
    gross £32897
    net £13374

    You posted before I completed mine! It would appear that I was incorrect in my assumption. I make the tax due as you first posted.

    I think that you are under the misapprehension that one needs to earn twice the profit to pay twice the tax. That is not true as you only receive one set of personal allowances. For example, profits of £9000 attract income tax of £180 in 2012/13. For profits of £10000 this would be £380, more than double! Class 4 NIC is also payable.

    Now are you sure that you do not also have to make payments on account - £885 on 31st January 2014 and 31st July 2014? i would be surprised if you were not.
    There are 10 types of people in the world - those who understand binary and those who do not. :doh:
  • FeistyFidget
    FeistyFidget Posts: 1,368 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Thanks purdyoaten, is there a straight forward answer as to why it's over double the amount for such a minimal increase?
    [/COLOR]
    2024 Challenges
    Live in the moment more and appreciate the small things
  • purdyoaten
    purdyoaten Posts: 1,159 Forumite
    Thanks purdyoaten, is there a straight forward answer as to why it's over double the amount for such a minimal increase?

    I think that I have answered that while failing to type as quickly as you. See my edit!
    There are 10 types of people in the world - those who understand binary and those who do not. :doh:
  • FeistyFidget
    FeistyFidget Posts: 1,368 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    purdyoaten wrote: »
    I think that I have answered that while failing to type as quickly as you. See my edit!

    lol oooops, the edit wasn't showing - thank you
    [/COLOR]
    2024 Challenges
    Live in the moment more and appreciate the small things
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