Self Employed Tax Return

macum1920

macum1920

Winger
Contributor
Greetings friends of the SMB, looking for advice, I’m a sole trader (not a euphemism), did my first return last year and did second one last week, payment due 31st January 21.
No problems with paying what’s due for the year gone, do I (legally) have to pay the advance tax, first payment would be due 31st Jan 21 and second payment 31st July 21, never had accountant advice but don’t want to pay what is not really due until 31st Jan next year.
I know I should get an accountant but I only raise a few invoices and the tax return part online is easy, just payment terms I don’t get.
Thanks in advance 👍
 


Harry Angstrom said:
You have to pay 50% payment on account in jan and July if you tax bill is over £1000. It is correct
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Cheers, that's a couple of grand I'm out then, think it's bad crack, especially as this is based on the current tax year which is shite for most people. I'll pay last years and some in July but they can do one this month.
 
macum1920 said:
Cheers, that's a couple of grand I'm out then, think it's bad crack, especially as this is based on the current tax year which is shite for most people. I'll pay last years and some in July but they can do one this month.
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They've offered "Time to Pay" which is a 12 month instalment plan if you can't pay it in full, but you do have to pay interest if you do that.
 
macum1920 said:
Cheers, that's a couple of grand I'm out then, think it's bad crack, especially as this is based on the current tax year which is shite for most people. I'll pay last years and some in July but they can do one this month.
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If your tax is going to be lower you can reduce the payment on account
 
macum1920 said:
Cheers, think I'll pay the bill for last year and then see what happens 😲, if they stick me with interest for advance payments I'll have to sort.
Thanks for advice, if I win the Euro millions tonight, I'm paying everybody who's responded a nice little tax free present. 👍
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Don’t do that. Reduce payment on account, pay it or let them know you cannot
 
macum1920 said:
Greetings friends of the SMB, looking for advice, I’m a sole trader (not a euphemism), did my first return last year and did second one last week, payment due 31st January 21.
No problems with paying what’s due for the year gone, do I (legally) have to pay the advance tax, first payment would be due 31st Jan 21 and second payment 31st July 21, never had accountant advice but don’t want to pay what is not really due until 31st Jan next year.
I know I should get an accountant but I only raise a few invoices and the tax return part online is easy, just payment terms I don’t get.
Thanks in advance 👍
Click to expand...
You’re being asked the first half of this year’s bill 10 months into the year. You really should have enough to pay if you’re making correct provision. Second half due 3 months after end of year.
 
macum1920 said:
...
I know I should get an accountant but I only raise a few invoices and the tax return part online is easy, just payment terms I don’t get.
Thanks in advance 👍
Click to expand...
As you have already argued, you really don't need an accountant, a lot of people waste money on them, if your business is simple, there is no need.
 

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