Employee in same tax year as starting cm- tax payable?

[MrsP2C]

I've just finished my end of year accounts for cm from when I started 5th nov - 31st March and have a nett profit of c.£3k. This is obviously well under the threshold for tax liability but I was employed until September & earned c£16k paying £2.7k tax this (12/13) tax year.

I've never done a self-assessment before so apologies if all will become obvious when I come to submit my form, but how on earth do I calculate my tax liability in a year I was both employed & self-employed and any ideas whether I will be paying the full 20% of my £3k nett profit or could it end up being a lot more?!

[Nicola Carlyle]

I may be wrong but your employement doesn't count really and you have already paid your tax on those earnings. Because you have provided your NI number the tax man can see this. I'd say you may even get a little tax rebate. I'm sure someone else may be able to clarify it a bit better.

[jo.jo76]

When you fill in the tax return online there will be somewhere you fill about earning from employment. Not sure how it will affect your tax though

[MrAnchovy]

I've just finished my end of year accounts for cm from when I started 5th nov - 31st March and have a nett profit of c.£3k. This is obviously well under the threshold for tax liability but I was employed until September & earned c£16k paying £2.7k tax this (12/13) tax year.

I've never done a self-assessment before so apologies if all will become obvious when I come to submit my form, but how on earth do I calculate my tax liability in a year I was both employed & self-employed and any ideas whether I will be paying the full 20% of my £3k nett profit or could it end up being a lot more?!

It will all become clear when you fill it in (do it online otherwise you won't be able to see if you make a mistake and could end up with a big bill and need to resubmit).

You will need to wait until you get a P60 (or use your P45 or your last payslip, although it can be difficult to see the right figures on a payslip) and fill in your earnings and tax paid in your job.

As your childminding profit is below the threshold you won't have Class 4 NI to pay: if there are any equipement purchases in there you may be better off not claiming them in 2012/13 but instead carrying them forward in a General Pool for capital allowances: in 2013/14 you can write off this balance if it is less than £1,000 which will save you tax AND NI.

But your childminding profit will be added to your earned income to give a total of £19k. Less your personal allowance of £8,105 gives about £11k; 20% tax on this is £2.2k so if you have paid £2.7k (I think this means you left in July?) you will be due a refund of £500.

[MrsP2C]

Brilliant thank you & fingers crossed for a rebate as with the 20% I've been putting away this could end up over £1k up - nice dent in next year's tax account or pay for a holiday :cool: