Help with SA TAX RETURN PLEASE

[LizP]

Hi there.

I am a bit confused about how much tax I will pay next year!

Basically I worked in a nursery this tax year from April to August and tax was deducted from my pay.

I will be Childminding from August-April this tax year and I am wondering if they will take into account my earnings in nursery (which were quite high) or whether they will just look at my childminding earnings as I have already paid tax for my nursery work.

I did call hmrc and they said I will be taxed on all earning from April to April regardless of where I worked but I am not convinced this is correct???

Confused!

[Elkie Mawdsley]

I haven't completed my first return yet as only started minding in June, but I think the form will ask for details of all income for the entire tax year, regardless of source. There should I turn be somewhere for you to note the tax paid too. Your tax due will be calculated based on total earnings minus any deductions already made (I think).

So - if total income for nursery and childminding was say £30k
You have a personal allowance of 10k
Tax due at 20% on £20k would be £4000
Bill would be 4k minus tax already paid.

[LizP]

Yes I thought as much, I'm just trying to work out how much if any I need to put aside for tax payment next year.

I only have one child so not earning a lot

Thank you!! Very helpful

[shortstuff]

I completed my tax return last year from a similar position to you. It was all self explanatory when i started completing it. The income i had received and tax paid were both taken into consideration and i received a rebate :-)

[Kiddleywinks]

Have a look at your P45 for your nursery job and find your gross income from Apr to August
You add that gross figure to your CM profit (income less expenses = profit) then deduct your taxable allowance for this year of £10,000
PAYE divides your annual allowance by the payment frequency, so either 52 weeks, 12 months or 13 months, to determine how much you can earn each pay period before taxing you.
Depending on how much profit you make between now and Apr will determine whether you have over or underpaid

eg
Employed income £12,000 (Tax already paid on this £1566.65)
Profit from CM Aug - Apr £5000

Total income for year = £12000 + £5000 = £17000
£17000 less allowance £10000 = £7000 to pay tax on

£7000 x 20% = £1400

Amount paid £1566.65

Overpaid £166.65 so you can claim a refund



Alternative example

Employed income £12,000 (Tax already paid on this £1566.65)
Profit from CM Aug - Apr £10000

Total income for year = £12000 + £10000 = £22000
£22000 less allowance £10000 = £12000 to pay tax on

£12000 x 20% = £2400

Amount paid £1566.65

Amount to still pay £833.35



The figures quoted are not accurate but should give you an idea, also, don't forget National Insurance, as you pay class 2 being self employed with a top up to class 4 over income of £7755. My NI bill is loads higher than my tax bill lol

[Chatterbox Childcare]

You get £10000 allowance per year and not per job so it all depends on how much you earn as a childminder as whether you need to pay more. If you don't earn a lot this year you may even get a rebate on what you have already paid because it will be an overpayment.

[LizP]

this is really helpful thank you

IM waiting for a bill to pay national insurance class 2 yes I suppose I will have to pay class 4 as I will more than £8000 in the year