Guide discussion: Self-assessment tax returns

[Deleted User]

And absolutely the opposite of a daft question. Many think that it cannot be claimed if turnover exceeds £1000.

twistyhair

I believe I am due a tax refund on last years PAYE as my employer made me redundant but I also need to fill in a self assessment as I rented out my property for a short time last year. I don’t want to mess it up and do myself out of my refund so is it worth paying an accountant to do this and if so how much should I expect to pay?
many thanks

Raabossi

I have just started to rent out my flat, so need to start doing a tax return as i am currently PAYE. I am finding it very stressful to try and understand what i need to do. should i get an accountant to do this for me and does anyone recommend any that can help me online?

[Deleted User]

Raabossi said:

I have just started to rent out my flat, so need to start doing a tax return as i am currently PAYE. I am finding it very stressful to try and understand what i need to do. should i get an accountant to do this for me and does anyone recommend any that can help me online?

If you have just started to rent the first tax return that is required is for the current tax year 2020/21 which must be completed by 31st January 2022 but anytime from 6th April 2021 onwards. If you are stressed at this point engage a local accountant - it should not be expensive and the fee would be worth it alone to get rid of it in your case. My brother-in-law gets me to complete his return every April to include the one property he has. He is a cardiac surgeon and finds the tax return much more traumatic than his daytime job!

adamzcloudz

This has probably been asked before buut here goes...
I was previously PAYE until being made redundant in september, i have since become self employed. The question i need answered is, if i am self assessed from october how will i calculate my tax to pay for the rest of the tax year (if i need to pay any) by 31st january i would have earned around £10,000 i have read a lot of things which are confusing. Any help would be very much appreciated.

pramsay13

adamzcloudz said:

This has probably been asked before buut here goes...
I was previously PAYE until being made redundant in september, i have since become self employed. The question i need answered is, if i am self assessed from october how will i calculate my tax to pay for the rest of the tax year (if i need to pay any) by 31st january i would have earned around £10,000 i have read a lot of things which are confusing. Any help would be very much appreciated.

If you are self employed from October you will need to pay income tax on your income from October to April the following year.
Your self assessment will need filed and paid by January of the year after.
How much you pay will depend on your tax rate and how much you have paid in your employment.
It might be worth putting aside 20% (or 40%) of your income and then you will have more than enough.

[Deleted User]

adamzcloudz said:

This has probably been asked before buut here goes...
I was previously PAYE until being made redundant in september, i have since become self employed. The question i need answered is, if i am self assessed from october how will i calculate my tax to pay for the rest of the tax year (if i need to pay any) by 31st january i would have earned around £10,000 i have read a lot of things which are confusing. Any help would be very much appreciated.

You started in October 2020. You must register for self -assessment and you first return is for the current tax year 2020/21 which must be filed by 31st January 2022. On that return you must declare all income received from self-employment for the period October 2020 to 5th April 2021 (or 31st March if you choose to make your books up to that date). You must also include your PAYE income from April to date (your P45 details) and the tax paid thereon. Any tax payable is due on 31st January 2022. 
However this is a full 18 months after you commenced with no tax paid and there is a catch up. On that same day you will have to make a payment on account for the following year 2021/22 which is equivalent to 50% of the previous year and an identical amount in July 2022. When it is time to file your second return these two payments will act as a credit against the total liability in 2021/22 which is finalised in January 2023. At that point matters should prove simpler.

milesyk

I am still awaiting my Self Assessment repayment which has been pending since May 2020 .i am told it is going through security checks and been given three data when it is supposed to be finalised .i have had no contact with any queries from HMRC .The next date they have given me is the 9th October. Any advise you can give me besides chasing again after this date if I don’t receive a refund. Thanks