Sole traders - Tax returns

Okay, so when I do her 18/19 assessment they’ll use that to base what she owes for 18/19 which needs to be paid by Jan 2019, and they also predict what she’ll earn in 19/20 and 50% of that will also needs to be paid in Jan 2019?

Jan and july 20 are the dates but yes if the tax bill is over £1k. You can remove them if you believe the income will drop next year
 


Okay, so when I do her 18/19 assessment they’ll use that to base what she owes for 18/19 which needs to be paid by Jan 2019, and they also predict what she’ll earn in 19/20 and 50% of that will also needs to be paid in Jan 2019?

Watch out for the different national insurance levels to. I’ve been caught out this year and owe a lot more NI.
 
Watch out for the different national insurance levels to. I’ve been caught out this year and owe a lot more NI.

Yeah they can get messy especially if you have a class 1 and 4 interaction.

Basically for the op, if his wife is just self employed she will only need to worry about class 2 and 4.

Class 2 is payable from about 5kish and class 4 from.about 8kish

Class 2 is a flat rate at £2.95 per week for 18/19. You dont have to pay it if your profits are under 5kish, personally i would as this contribution gets you your state pension stamp and its not a lot over the year for a qualifying pension year.

Class 4 is payable on profits over around 8kish and is at 9% up to a certain amont then it drops to 2%.
 
Yeah they can get messy especially if you have a class 1 and 4 interaction.

Basically for the op, if his wife is just self employed she will only need to worry about class 2 and 4.

Class 2 is payable from about 5kish and class 4 from.about 8kish

Class 2 is a flat rate at £2.95 per week for 18/19. You dont have to pay it if your profits are under 5kish, personally i would as this contribution gets you your state pension stamp and its not a lot over the year for a qualifying pension year.

Class 4 is payable on profits over around 8kish and is at 9% up to a certain amont then it drops to 2%.

That’s where we got caught out, went quite a bit into the Class 4 9% bracket this time round. Makes a big difference.
 
Surely I’m just hoying her figures in and then it’s going to tell me what I owe? I don’t have to work out NI contributions and shit do I?

I can't remember the date off the top of my head but I think it might be the end of October. If you do it by then, they do all the sums and work out the tax and NI due. I usually do that but you can work out out yourself to double check their calculations if you want to.
 
I can't remember the date off the top of my head but I think it might be the end of October. If you do it by then, they do all the sums and work out the tax and NI due. I usually do that but you can work out out yourself to double check their calculations if you want to.
If you file on paper, it needs to in (at HMRC) by Oct 31, if you file online, its 31 Jan 2020

NI Class 2 is worked out on a weekly basis (around £153 for a full year) and 4 (Self Emp) does depends on profit, just pop in your figs, dates etc and HMRC, or the online system will work it out for. You can Self Calc if you want
Register for self assessment account to allow her to file her return online too.

Should be easy enough to do herself with help from the taxes helpline. Save you paying an accountant

Does if shes self employed?

Not if you dont earn above 1k gross.
We pay around £350 for a small business. Got to start doing quick books next year and also have to pay next years tax 6 month in advance from this January.
thats called Payment on account, your 18/19 tax liability must have been over £1000?
Jan and july 20 are the dates but yes if the tax bill is over £1k. You can remove them if you believe the income will drop next year
however... If you reduce and the tax is higher, you will be charge interest
I’m not using one now

Pretty easy to follow really ... even without an agent
 
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If you file on paper, it needs to in (at HMRC) by Oct 31, if you file online, its 31 Jan 2020

NI Class 2 is worked out on a weekly basis (around £153 for a full year) and 4 (Self Emp) does depends on profit, just pop in your figs, dates etc and HMRC, or the online system will work it out for. You can Self Calc if you want


Not if you dont earn above 1k gross.

thats called Payment on account, your 18/19 tax liability must have been over £1000?

however... If you reduce and the tax is higher, you will be charge interest


Pretty easy to follow really ... even without an agent
Yes that’s right.
 

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