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Tax return time again

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HWCS

HWCS

Well-known member
Messages
1,130
Location
North Norfolk
Well its the 2nd of April and im ready, spent a few hours today doing all my books and now ive just gotta wait till April 5th and input the figures 

#ontheball

 
Part Timer said:
Just done mine, took about 4 hours today. One more year investing then, hopefully, 4 or 5 years without any major spend. Only trouble then is the tax bill just gets bigger
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Yeah im now at point when next years costs are gonna be 1/4 of this years,so next year tax bill will sting

 
I'll get mine up to date over the weekend ready to drop the paperwork off at the accountants, mine is pretty much in order I just to need to sort through the last few months invoices and print some off, probably take an hour or so 

 
HWCS said:
I believe this is only applicable to people that pay in installments (quarterly or 6monthly).

I pay 1 payment annually
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After your first year you will be asked for an advanced payment in July, usually an amount of half of what you paid last year. This tax year everyone was given the option of not paying it due to Covid.

 
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HWCS said:
So this year i will have to pay 50% extra?
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After your first tax return you should be asked for an advanced payment for the end of July, which will be half of what you paid for your 1st year, this should be on the letter from HMRC. For your second January tax bill you should have the credit you've paid in July set against what you owe and an additional 50% for the following year.

 
Last edited by a moderator:
Part Timer said:
After your first tax return you should be asked for an advanced payment for the end of July, which will be half of what you paid for your 1st year, this should be on the letter from HMRC. For your second January tax bill you should have the credit you've paid in July set against what you owe and an additional 50% for the following year.
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I dont pay in July and January, i opt'd for the 1 annual payment. ??

 
HWCS said:
I dont pay in July and January, i opt'd for the 1 annual payment. ??
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You can request due to circumstances/low profit request an exemption to the advance payment but I don't know how. If you have an accountant check with them as you could get a big unexpected bill come July!!!

 
I am 99.99% certain that you will have to pay a payment on account in July as others have said. Most people pay their tax bill in 1 hit, however you still have to pay the payment on account.

 
You only have to make a payment on account of your tax bill is over £1000. If it is over £1000 then the only way to not pay it is to ask to reduce it because you think your profit will be lower the year after. But if you're profit isn't lower then HMRC will charge you interest on the payment on account you should have made (even though it's technically a tax payment on earnings not earned yet).

 
RyeCleanLiam said:
You only have to make a payment on account of your tax bill is over £1000. If it is over £1000 then the only way to not pay it is to ask to reduce it because you think your profit will be lower the year after. But if you're profit isn't lower then HMRC will charge you interest on the payment on account you should have made (even though it's technically a tax payment on earnings not earned yet).
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He's got nearly 450 customers, if his tax bill is less than £1K I need to speak to his Accountant, quickly ? 

 
Part Timer said:
He's got nearly 450 customers, if his tax bill is less than £1K I need to speak to his Accountant, quickly ? 
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I'm that case so do I ? then I'm perplexed at why he's never made payments on account in July and Jan. Unless he pays it all in Jan I suppose. I have now set up a monthly DD so I don't make 2 bigger payments a year.

 
Part Timer said:
He's got nearly 450 customers, if his tax bill is less than £1K I need to speak to his Accountant, quickly ? 
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Ive not had all them customers all year  i started the tax year with 230ish and didnt work until mid May, and ive spent nearly £20k on the business this year so could be close, as profit margin isnt as high as id have liked but next year will be a ??? kinda moment ??

RyeCleanLiam said:
I'm that case so do I ? then I'm perplexed at why he's never made payments on account in July and Jan. Unless he pays it all in Jan I suppose. I have now set up a monthly DD so I don't make 2 bigger payments a year.
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Last year was my first tax return

 
HWCS said:
Ive not had all them customers all year  i started the tax year with 230ish and didnt work until mid May, and ive spent nearly £20k on the business this year so could be close, as profit margin isnt as high as id have liked but next year will be a ??? kinda moment ??

Last year was my first tax return
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I'd start saving now if I was you it will make it easier moving forward, as you will have as others have said two payments on account and you will have to make a payment this July depending on what your profit is then a Jan payment, 

But next July for example could be a 5k payment then Jan 10k then July again at 5k, I would take a good look at what your potential tax liability is going to be, Also if you ain't got an accountant I'd get one ASAP he or she would have made you aware of all of this.

 
Iron Giant said:
I'd start saving now if I was you it will make it easier moving forward, as you will have as others have said two payments on account and you will have to make a payment this July depending on what your profit is then a Jan payment, 

But next July for example could be a 5k payment then Jan 10k then July again at 5k, I would take a good look at what your potential tax liability is going to be, Also if you ain't got an accountant I'd get one ASAP he or she would have made you aware of all of this.
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How much profit would you need to be turning over to pay £10k tax

 

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