Do I need to pay IR an amount 'on account for 07/08?

Tracyk_2

My self employed tax for 06/07 won't be very much as I was PAYE for 10 months of that year.
I haven't done my SA yet - but I'll have something to pay.
Will I also have to pay something for year 07/08?

Jaxer

Tracyk wrote: »

My self employed tax for 06/07 won't be very much as I was PAYE for 10 months of that year.
I haven't done my SA yet - but I'll have something to pay.
Will I also have to pay something for year 07/08?

If the tax liability is under £500 then you don't have to make payments on account (ie. you just settle your 2007 liability). You also don't have to make payments on account £500 if at least 80% of the tax was deducted at source (eg. through your PAYE income).

If you don't make payments on account, then remember that your payment for 2008 (due by 31.01.09) will have to cover the whole liability in one payment (plus any potential payments on account for 2009) so you should budget towards that.