Tax return. Is this right?

jamesflood

Hi Guys, im a bit stumbled here. Not 100% sure how it all works but this last year I have been self employed. I used a company in London to do my tax return for me so all i need to do is fill out a pack they send to me and send it off. This year I have earned (as self employed) £9568 and paid £1914 tax.

I can claim back all my materials, protective clothing, fuel etc etc but I haven't put those in the pack just yet as im still on my PAYE earning for this year.

But arn't I allowed to earn £9600 before paying any tax? And does this mean that all of the tax ive paid there will come back to me? And more maybe because that doesnt include all my materials etc.

Regards

James

somethingcorporate

If your total income for the year is under the personal allowance then yes, the income tax you have been paid should be returned to you.

jamesflood

theres rouhgly another £3k to add to that through my PAYE which i have also paid tax on. Will this effect it much?

Regards

jamesflood

Total income from both is £12,344 and tax in total is £1999

Regards

James

jamesflood

tax code for PAYE which i had in January is 956L

jamesflood

So ive overpaid by about £1445 then. So if I get that back and the cost of my other outgoings towards the business, im looking at a nice little lump back.

TheCyclingProgrammer

jamesflood wrote: »

So ive overpaid by about £1445 then. So if I get that back and the cost of my other outgoings towards the business, im looking at a nice little lump back.

You don't get the cost of your outgoings back, you get tax relief at your marginal rate on the value of your legitimate business expenses.

For example: if your tax deductible expenses are £1000, then you can deduct £1000 from your taxable profits before calculating tax. At the basic rate, it would represent a tax saving of £200.