When is one classed as a 'tax payer'?

gterr

Please excuse this very basic question: Is one regarded as a taxpayer in the year one receives income above the threshold (personal tax allowance) or in the year one actually pays the tax bill in respect of that income?


I am asking because of the implications for Gift Aiding some money. For instance: I am self-employed and my income varies. Some years I have income below the basic rate tax allowance. If I have a bumper year and have income above the threshold that year, but don't pay the tax until the next year when I've completed my tax return, in which year am I a tax payer, the first year or the second?


Thanks for your time.

laurel7172

The year in which the tax liability arises, i.e. the bumper year.

gterr

laurel7172 wrote: »

The year in which the tax liability arises, i.e. the bumper year.

That's a relief! Made a big Gift Aided donation this year before I'd thought things through. Should be OK now.

pjclar02

This may or may not be relevant in your situation, but it is possible to claim for the gift aid donation to be treated as if it was made in the year prior to that of payment, which may help in the future if your income has peaks and troughs