Self Assessment Guidance

odegramusic

So If I make £0 next year I get that money back, otherwise it goes towards the next year's tax bill?

I'm sure everyone here is very used to this, but as I have only every been on PAYE, this just seems like a strange way of doing it.

Dazed_and_C0nfused

odegramusic said:

So If I make £0 next year I get that money back, otherwise it goes towards the next year's tax bill?

I'm sure everyone here is very used to this, but as I have only every been on PAYE, this just seems like a strange way of doing it.

POA have existed from day 1 of Self Assessment.

Let's say for 2022:23 your liability was £800.

Each 2022:23 POA would be reduced to £400 and you would be in credit for anything you had paid in excess of that.

Don't forget by the time you come to pay the POA the tax year (2022:23) will be three quarters over i.e. you are not paying in advance.

odegramusic

Final question!

How come I am paying NI based on £11,916.40.

Surely the figure used to calculate NI should only be the tax due on the extra 21,454.00 as all other NI contributions have already been paid through PAYE.

[Deleted User]

And the balancing payment for 2021/22 is not due until 31st January 2023, ten months after that tax year ended.

Jeremy535897

odegramusic said:

Final question!

How come I am paying NI based on £11,916.40.

Surely the figure used to calculate NI should only be the tax due on the extra 21,454.00 as all other NI contributions have already been paid through PAYE.

From my earlier post:
Class 4 NIC at 9% on £21,545-£9,568 = £1,077.93

You pay class 4 NIC on self employed profits over £9,568 and under £50,270 for 2021/22.

[Deleted User]

odegramusic said:

Final question!

How come I am paying NI based on £11,916.40.

Surely the figure used to calculate NI should only be the tax due on the extra 21,454.00 as all other NI contributions have already been paid through PAYE.

You don’t pay NI on tax - you pay on income.

sheramber

You pay NI on both your PAYE  income - deducted from your wages- and on your self employment- assessed along with your tax. The NI contributions you have paid on your PAYE income is totally separate from that payable on self employed income. Also, the rates are different .

Any student loan payments deducted from your wages should be shown on  your self assessment return.