What tax am I liable to pay, help please ?

Banana_Hammock

Thanks for the replies everyone, I paid a balancing payment of £1300 in Jan for 13/14 and my first payment on account of £4040 for 14/15, that leaves me £4040 to pay in July to finish my self employment tax owing, my employment tax I've put away the money I should have been deducted ready for when asked for it, I've to send both my P60 and Wife's P60 to accountant as he believes we will be due a tax relief on the marriage allowance with wife being part time with NHS but with her due to going back in June having finished maternity leave I'm not sure if we qualify, people who I work with believe I will be due a rebate but personally I don't think so as if I've earned taxable income then I'm paying on monies I earned.

TBH I'll be glad to be free from the stresses of self employment and just want everything owing to be transparent and so it can be settled and I can enjoy being employed instead.

Thanks for all the advice.

sheramber

In post 84 you state

My tax code is 1060L my first month tax and NI was taken out, second month I wasn't charged tax and refunded the first months tax deduction also, then month 3 and 4 I didn't get any tax taken just NI for all 4 months.

So you have not paid ant PAYE TAX.

To calculate the tax due for the year you need to add together your total PAYE income and your self employment profit figure to cessation.

Take away your personal allowance and the balance is charged to tax

If the sum due is less than the payment on account that you paid in January then any excess will be refunded.

Without the final profit figure for you self employment nobody can tell you what tax you will have to pay.

Banana_Hammock

Thank you for your information 👍🏻

Banana_Hammock

Hi all,

My accountant visited yesterday so just updating, my tax bill for 15/16 is a lot higher than anticipated, as you are aware I wasn't paying tax as HMRC refunded my first PAYE and didn't take the other 3 months of the financial year (I deducted it myself and put it in my bank to await giving it to them) but accountant says my tax bill is now near £3000 higher as my earnings for 8 month at self employed has been added to my earnings at 4 months employed and I'm over the threshold and must pay 40% tax on all earnings for the full 12 months.

Does that sound correct ? I've no problem paying if so but it doesn't seem right to me as its two separate jobs and my business ceased on the last day of month 8 but I'm being charged for all 12 with both earnings added together.

Puzzled, thanks for any replies in advance.

Darksparkle

Banana_Hammock wrote: »

Hi all,

My accountant visited yesterday so just updating, my tax bill for 15/16 is a lot higher than anticipated, as you are aware I wasn't paying tax as HMRC refunded my first PAYE and didn't take the other 3 months of the financial year (I deducted it myself and put it in my bank to await giving it to them) but accountant says my tax bill is now near £3000 higher as my earnings for 8 month at self employed has been added to my earnings at 4 months employed and I'm over the threshold and must pay 40% tax on all earnings for the full 12 months.

Does that sound correct ? I've no problem paying if so but it doesn't seem right to me as its two separate jobs and my business ceased on the last day of month 8 but I'm being charged for all 12 with both earnings added together.

Puzzled, thanks for any replies in advance.

You pay tax on your total taxable income. It doesn't matter if you work one day or all year, what's relevant is the total income for the year.

You don't get a separate allowance for each job with tax, only NIC.

CLAPTON

Banana_Hammock wrote: »

Hi all,

My accountant visited yesterday so just updating, my tax bill for 15/16 is a lot higher than anticipated, as you are aware I wasn't paying tax as HMRC refunded my first PAYE and didn't take the other 3 months of the financial year (I deducted it myself and put it in my bank to await giving it to them) but accountant says my tax bill is now near £3000 higher as my earnings for 8 month at self employed has been added to my earnings at 4 months employed and I'm over the threshold and must pay 40% tax on all earnings for the full 12 months.

Does that sound correct ? I've no problem paying if so but it doesn't seem right to me as its two separate jobs and my business ceased on the last day of month 8 but I'm being charged for all 12 with both earnings added together.

Puzzled, thanks for any replies in advance.

you pay tax on your total income 6th april to 5th april then next.

HMRC will work out the tax due for the whole year's earnings, then deduct any tax already paid (e.g. from PAYE) then charge you the balance.

NI is based on each separate job and for each pay period