Here we go again!!

[Jelly Baby]

EVERY year.. and ive been doing this a long time i struggle with my return..sigh.

Im online trying to work it out roughly as need it for tax credits and to pay my tax bill.

Its asking for my self employed income..do i put my income or do i deduct my 10% off first then put that total?
Thanks

[Bridey]

I give them an estimation of my income minus my expenses - ie my net income. I try and give a figure a little higher than the one I am expecting so when I get the actual amount I get tax credit money back rather than more taken off.

[cathtee]

You just put your income, the 10% comes off as an expense. good luck doing it don't do mine until december although books are done and I have my taxable figure worked out finalising end of year:)

[MrAnchovy]

This is for tax credits isn't it? The figure they need is your net income after all expenses (including the 10% wear and tear).

For your tax return, your income goes in before wear and tear which should be included in your expenses.

[Jelly Baby]

Its for both! Need to do my tax return but also need my figures to do my tax return.

Thanks ladies

[Jelly Baby]

Its no good im officially useless!

I have done some REALLY quick figures and dont get the outcome! Know the 2nd job is taxed at more and im not sure how much the personal allowance is? rounding them up to simplify things..

I have put in:

Childminding: £22,900

expences come to: £11,600

2nd job is £2,500

So above income minus expenses is about £13k - the allowance..what am i missing as my tax bill is almost £3k?!

Thanks

[Bridey]

Tax for 11/12 on £13,000 is £1105 (after tax free allowance). Then you have NI on top of that £692, plus the payment towards the next year which would be about £850 I guess :(

Is your second job self employed? Do you not have separate expenses for it? If its an employed job then you would have already paid some tax & NI on it ... and used up some of your tax free allowance??

Are you doing your tax return online? If not, then try and do so - it works it all out for you.

[MrAnchovy]

The second job is not taxed at more, and that's not quite how the calculations go.

Profit from childminding: £11,300
'2nd job' £2,500
Total for income tax £13,800
Less personal allowance £7,475
Income Tax at 20% on £6,325 is £1,265

Profit from childminding £11,300
'2nd job' if self employed £2,500
Total for Class 4 NI £13,800
Class 4 threshold £7,225
NI at 9% on £6,575 is £592

Total Tax and NI for 2011/12 £1,856 payable by 31 January 2013

Because this is over £1,000 you will also have to pay 50% of this on account for 2012/13 by 31 January 2013, totalling £2,785. Is this what you are looking at?

Note that if the '2nd job' is in employment rather than self employed no Class 4 NI will be due.

[Jelly Baby]

Thanks

2nd job is employed and non taxable as such each month through work as i dont earn enough each month.

Still confused..do i not pay class 4 Ni then..sure i did last year? When on the return does it take the allowance off we all get?

Will fiddle with it again later!