Self Assessment: HMRC refunded tax and then want me to refund it back again??

fuzexi

Jeremy535897 said:

When you are self employed, you have to register if your sales are over £1,000 in the tax year. You pay tax on your profit, which is sales less expenses (like goods purchased to sell, telephone costs, motoring costs, insurance etc). If these expenses add up to less than £1,000, you claim a trading allowance of £1,000 instead. These figures reduce your income (in your case, if your sales were £6,500 and your actual expenses were £2,500, you would be taxable on £4,000). If your total income for 2020/21 is under £12,501, you don't pay any tax, but you don't get anything back either.

I take it "total profit" means profit after I have claimed the £1,000 allowance?

I called HMRC, and unfortunately I got a guy who the first thing he told me was he was new to the job, and he really couldn't answer the questions I asked him. He told me to submit the return (I'm pretty sure what I have entered is solid now, and the error is on their end) and then they will be able to submit it. I'll put a note in the "any other information" drawing attention to the problem and that I had phoned HMRC and they said they would look into it.

Jeremy535897

If your sales were £6,500, and your expenses were under £1,000,  you would declare profit of £6,500 less trading allowance £1,000 = £5,500.

If you submit a return showing you owe £2,200 tax, when you don't know why, that may not be ideal. You really need to get an answer to what this amount is.

fuzexi

Finally got through to HMRC. They checked and said this amount was due to amounts that had been adding on year by year since 2014. The good news is that I only need to pay back £43. So I amended the form and resubmitted it.
The problem is now I need to pay that amount by today, but the submission itself takes 72 hours to process. So when I try to pay it is asking me for the previous amount.... any idea what to do? 

[Deleted User]

fuzexi said:

Finally got through to HMRC. They checked and said this amount was due to amounts that had been adding on year by year since 2014. The good news is that I only need to pay back £43. So I amended the form and resubmitted it.
The problem is now I need to pay that amount by today, but the submission itself takes 72 hours to process. So when I try to pay it is asking me for the previous amount.... any idea what to do? 

Just pay £43. Nothing else.