Self Employed Tax Return

[Nookie Bear]

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.

Correct , only issue would be if trading very much different to the year we’ve just done returns for.

You could flip it and ask why should the government wait up to 22 months for the tax when if PAYE it would be paid over monthly or even weekly. I’m surprised this wasn’t introduced a long time ago

 

[THELORDRODWELL]

Don’t do that. Reduce payment on account, pay it or let them know you cannot

Let the scrounging thickie learn the hard way

or get a proper paye job

 

[Porters right boot]

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.

Exactly right...if you were in paid employment you don’t have the option of hanging on to your tax for this length of time....I find it childish people saying they are hanging onto it till the last day...it must be earning nowt in a savings account...The same people are probably claiming the Self Employment benefit...

 

[macum1920]

Let the scrounging thickie learn the hard way

or get a proper paye job

Not a response I was expecting, but thank you for for your kind words and consideration.

Let the scrounging thickie learn the hard way

or get a proper paye job

You’ve missed out on the lottery share for your harsh words, who’s the thickie now!!

 

[TommyB]

Reducing your payments on account just because you don't want to pay half of the current years tax bill in advance of the due date is a bit silly. All you're doing is kicking the can down the road and increasing the amounts due in Jan 22, never mind the interest due.
If you've had the money pay the tax.
Unless of course you have a genuine reason to reduce payments on account because you can reasonably forsee that business profits will be significantly reduced in current year. Then go for it.
Please dont just do it for the sake of it.

 

[Roger]

Thats the way it works. 50% in advance, 50% in arrears. Once you get past the first year it just means roughly equal payments every six months...or if your business is doing well, an extra balancing payment in January.

As @TommyB says, don’t reduce payments on account unless your business is in decline and you will earn less next tax year than this. if that isn’t the case you are just creating a problem for yourself.

Exactly right...if you were in paid employment you don’t have the option of hanging on to your tax for this length of time....I find it childish people saying they are hanging onto it till the last day...it must be earning nowt in a savings account...The same people are probably claiming the Self Employment benefit...

That would make me childish then. I will pay things on time, but I don’t see any benefit in paying things in advance, and of course I claimed SEISS, just like I would have accepted furlough money had I been employed and unable to work. I always find that having money to buy food and pay the bills helps!

 

[TommyB]

Good time to point out that HMRCs announcement today does mean no penalty for filing online before 28th February but doesn't mitigate the interest charges if you pay the tax due after 31 January.
If you don't like paying tax you will like it even less paying interest as well. Although only a few pounds in most cases.
My advice would be work to the original deadline of 31 January.

 

[BDI]

Good time to point out that HMRCs announcement today does mean no penalty for filing online before 28th February but doesn't mitigate the interest charges if you pay the tax due after 31 January.
If you don't like paying tax you will like it even less paying interest as well. Although only a few pounds in most cases.
My advice would be work to the original deadline of 31 January.

3 - 3.25% over the year

 

[Joe Public]

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

You can select to defer it, which is what I’ve done this year, and give reasoning why, suck as you expect your taxable income to be lower.