View Full Version : Paying in advance for next tax year?
Not sure what it is called but I'd like to know how much is the threshold for having to pay some of next years tax? Does that make sense? I'm hoping to move so have taken on lots of work and spent the bare minimum this year to try and get earning up as high as I can for the sake of getting a mortgage. I think I will be paying quite a bit of tax and probably some of next years. How does that work? I want to make sure I keep on top of it. I'm talking about tax year which ends this April 2014 as I do my tax returns in April so it's done. Thank you!
Chatterbox Childcare
03-02-2014, 02:35 PM
The tax threshold for 13/14 is just over £9000 so that will help with your tax bill.
To pay "on account" for 14/15, the amount will be calculated on tax and ni due for 13/14. Half of your 13/14 tax will be due by 31st January 2015 (same as all of your 13/14 tax) and then the other half by 31st July 2015. The tax office will write to you and let you know what is due in December 2014.
I believe that currently you pay on account once you have a £1000 tax bill
Hope that makes sense.
cathtee
03-02-2014, 07:31 PM
I think what you are asking is:- how much does your tax bill need to be for 13/14 to incur the next years tax payable in 2 halves, If your tax bill is around £1000 you will have to pay the £1000 plus £500 by 31.1.15 and then the other half by july '15 then when you submit your tax for 14/15 if you haven't earnt enough to use all the tax padi on account you will get it back. When it happened to me I didn't know about it and I was so shocked that I had to pay in advance.
Thank you so much that is exactly what I was asking and the answer I needed. Usually I do my tax return in April for the tax year just finished, so this April I will do it for the year 2013/14 and I make the payment straight away. (as I put a percentage of every invoice away every time so have it there and don't like the thought of leaving it longer than I need to) Will I still be able to do this and then when would the next bit be due? Is it by end of Jan 2015 I would have to pay another £500 (or is it half of what the previous tax bill was?) and then when I submit in April 2015 I would then pay the balance for that tax year? I am probably making it too overly complicated but in term of available cash for moving house it is quite important!
cathtee
03-02-2014, 09:54 PM
Payment on account is payed in january & july, so i assume it would be 13/14 on account in january '15 and then july '15. It will be half of the 12/13 tax bill then the other half.
It will become more clear when you submit your tax return.
Pretty complicated hey?! Thank you :-)
Chatterbox Childcare
04-02-2014, 08:42 AM
If you do your accounts in ~April the tax office will make any changes of overpayment if you didn't earn so much and that will be reflected in the July bill
Fab thank you chatterbox :-)