Worried about my tax return..

gabyjane

I have been self employed since Sept 05 and have paid my tax each year, i have been paying on account and am due my next payment at the end of July which is saved up ready.
I then panicked the other day and said to my friend who works in the same job as me that was i going to be billed in April again..she said no but i'm thinking yes..i am really worried that they are going to want a lot off me as mine is usually high..
hope that makes sense. I am employed as well does that make a difference?
thanks

Mikeyorks

gabyjane wrote: »

I am employed as well does that make a difference?
thanks

Potentially. But if you're paying PAYE for your employment (Code 543 or thereabouts for 08-09) ...... and submitting SA Returns for the self-employment (and paying payments on account in Jan / July ... with a balancing payment Jan?) ....... then the two are being dealt with separately.

So 'April' only exists in as far as they will be sending you an SA Return to go back in Sept 08 to Jan 09? It's not a payment orientated date.

edddd1

You are paying January 08 and July 08 Payments On Account towards the 07-08 Tax Year (based on your 06-07 years figures, two halves of the balancing payment when it is over £500). In April you should receive your next tax return, which if you submit a paper version to HMRC should be completed ideally by 31st October 2008, or by January 2009 if filing over the net. Payment date for the 07-08 return is still 31st jan 09. If you file your return before 31st july, and HMRC has time to capture the return (if paper), and your income has reduced, then the 2nd payment on account (31st July 08) might be reduced. If income was same or higher, 2nd POA would stay as you now expect it to be, but you'd have a balancing payment to clear up in by 31st Jan 09, and the POA's continue again.

I presume you enter both your PAYE and your self-employment on your tax returns? (which of course you need to).

If you follow that, well done. If not, basically there's no April deadline. I'd suggest phoning you tax area (number would be on your tax return) and ask for an appointment at your local tax office. When that's arranged, some bod there could explain things fully to you, and even help with your 08 return. I've been there alot and most are very helpful, though there services and provisions seem to be being squeezed with the cuts at HMRC.

gabyjane

Thanks guys think i understand!
I will submit my return online as soon as i get my P60 from work (i estimate roughly £3500 for the employed bit)..i will then pay my bill at the end of July for the previous year..then will i hear from the tax office?
IF i do get another bill i just need to know that i have time to save for some of it!
My PAYE through work is under the weekly threshold so i don't get taxed each month, this goes on my return with my self employed (seperate though!)
We are getting wed in October and was panicking all my wedding budget will go on it!
I have tried calling them and they are useless tbh, i may try again depending on what i have earnt..fingers crossed eah! i hate this time of year.

Mikeyorks

gabyjane wrote: »

i will then pay my bill at the end of July for the previous year..then will i hear from the tax office?

No ..... your timings all to pot;)

What you are due to pay 31st July is 50% towards next year's bill. You paid (?) 50% back in January. Those 2 estimated 'payments on account' are based on what you owed in total for last year.

The determination of what you will actually owe 31st Jan 09 ..... comes from the Return you are due to submit sometime between now and Jan (Oct if you do it on paper). If that is more than the 2 payments on account made 31.1.08 and to be paid 31.7.08 ..... then you will owe the balance 31st Jan 09. If your Return shows less than the 2 payments on account .... then you get a refund 31st Jan 09 OR you can reduce the 31.7.08 payment if you get the Return done before then OR you just take a credit for it against the payment on account due for the following year!

As, don't forget the cycle starts afresh in Jan 09. So you also have to pay 50% on account of the following year then. And that 50% is based on what the Return shows as due for this last year ... and which you are due to submit anytime from now up to Jan (Oct if on paper)??????

So again ..... nothing due in April in monetary terms.Just your SA Return sometime after you have your P60. You'll then hear from HMRC once they've processed your (paper) Return ..... or immediately if (better all round) you do it online?

Is that a modicum clearer?

gabyjane

Thanks! i'm useless i know!! my friend who is in the same job runs through it with me each year online and still i am clueless! i guess as it's a once a year thing it doesn't really enter my mind after!!

Anyway my original bill was just under £3k..£28** can't think so i paid:
£915 in April..
Same in Jan 08
and again in july i am due the same..
SO if my return coming up the bill is roughly the same £28** i will have the same payments due first one being in Jan 09..does that make sense?! Sorry i know i prob sound thick...i am lol

Oh and just to add to it! IF i submit it in Jan at the latest what happens then if it is due then..pay it straight up?

Thanks for your patience!

Mikeyorks

gabyjane wrote: »

IF i submit it in Jan at the latest what happens then if it is due then..pay it straight up?

No. You will still only owe any 'balancing' payment for the closing year ... and 50% on account of the following year. (followed by 50% in the July)

so i paid:
£915 in April..
Same in Jan 08
and again in july i am due the same..

..... doesn't instinctively make sense. Can't work out where the April payment comes from (early for July??) .... and I would have thought the payments on account should have been closer to £1400. BUT .... the payments on account are reduced if a high proportion of your income is from PAYE .... so it could be that?

But if your overall tax bill from the Return you're due to make is similar to the previous one .... and the PAYE proportion is similar .... then, yes, your payments on account should be adjacent to the previous year.

gabyjane

Hi sorry for delayed reply been manic!

Ok well tbh i have lost the plot with it all and know i am up to date but not sure what i paid and when! I have my tax return here for the 2006-2007, it shows as total owed as £2,787.42.
Payment of £929.14 due Jan '08' PAID
Payment of £929.14 due July 31st '08' UNPAID

As for the previous figures well as i was employed and taxed at the time it was slightly different but still up to date which is all that matters!

I am expecting to make roughly the same earnings this year so hopefully won't get hit with anything unexpected!

Looking at this sheet i have just confuses me all over again! i am useless with figures suprised i have lasted this long lol.

Mikeyorks

gabyjane wrote: »

I am expecting to make roughly the same earnings this year so hopefully won't get hit with anything unexpected!

That should be right if the earnings are broadly similar and the proportion of employed / self employed is about the same. As your payments on account look to be lower than usual because of your PAYE element.