Tax question

[Natalierose]

I registered as self employed in sept. When will I have 1st have to pay tax? I haven't had any letters regarding tax yet just national insurance.
Tia x

[cathtee]

I am just getting my 12/13 accounts ready to submit in december, so you will be due to submit your sept13-apr 14 in oct 14 if paper
filing or Jan 15 for on line payable end of jan15.

Think this is right brain a bit puddled at mo.

[samb]

You can do your first tax return from April 2014 but you will have until jan 2015 to do it and to pay so plenty of time!

[Natalierose]

WOW!! I wasn't expecting it to be that far away. I just presumed it would be due in April 14 for to cover the time up until then. Good news I suppose.
Another question then:
With all the start up costs (I don't have my own children so had to buy everything from scratch) did you have to pay much tax in your 1st year?x

[Jenna]

I think you can earn about £8500 without paying any tax I started minding in may 2012 and I've only just fine my first tax return. I had my own ds I think I spent about £800 in start up costs then I just added to my resources as and when I needed too. I did get a lot off Facebook car boot sites I had a nearly new double buggy that had been used at grandparents house for £40 it cost over £200 new and was like new

[bluebell3]

My first year I didn't pay any tax because I earnt so little and had spent so much on equipment and resources. The second year I got a tax rebate as I'd been working paying higher rate tax and got most of it refunded.
This year I will have to pay tax so the plan is to do tax return as quick as possible and then I will know what needs to be paid ASAP - although I suppose the best way would be to put a little aside each month!

[loocyloo]

My first year I didn't pay any tax because I earnt so little and had spent so much on equipment and resources. The second year I got a tax rebate as I'd been working paying higher rate tax and got most of it refunded.
This year I will have to pay tax so the plan is to do tax return as quick as possible and then I will know what needs to be paid ASAP - although I suppose the best way would be to put a little aside each month!

there is a gadget on the tax website that will estimate how much tax you will need to pay if you put it an estimate of your gross income. I can't find it now, but I know its there, as someone sent me the link via the forum last year!

I put aside 5-10% each month that will go towards my tax bill. the thing to remember is that as well as tax, IF you have to pay tax, then you end up having to pay some extra NI, and if your tax bill is over a certain amount, you then are asked to pay 50% of the FOLLOWING tax years bill, in advance. ( it all gets very confusing! )

[bluebell3]

ooh good plan - it just feels like everything is a struggle financially at the moment so I am dreading a tax bill because I can't afford any kind of savings at all. Every time I think I am getting ahead I have a week off and need the money to make up the shortfall. I only had 3 weeks off last year and it just about wrecked my finances - and we didn't even go anywhere!
Thinking of taking a job just so I can have paid holidays and know where I am every month. Next year I am actually having a holiday away so once I've got my Christmas time off out of the way hopefully i will start putting a little away for that.

That tool sounds really good - off to see if I can find it! thank you.

[scottishlass]

I did my first tax return in April and didn't have tax to pay as was just for a 5 month period. I plan to again do my tax return in April so if I do have tax to pay then I have till the jan to pay it (hoping I don't have any to pay!) x

[samb]

It's a really good habit to get into to receive money from a paid invoice and put a percentage away for tax and ni bills. Even if you don't have to pay any when it comes to it at please its sitting there ready and you don't have to struggle to find it. The way I see it is that part of my pay is not my money and so therefore I put it aside ready for the person whose it is to take it (obviously not literally!) if you pay nothing then you get annual bonus too! I personally put 20%. You may feel you can't afford to right now but
it will feel worse when you have a whole years bill to pay and you have not allowed for it. Even 5% like someone else suggested would feel less painful. I can't imagine you would pay anything in your first year especially as its only part of a year by the way so maybe try and get you r head around it ready for next year? X

[Natalierose]

It's a really good habit to get into to receive money from a paid invoice and put a percentage away for tax and ni bills. Even if you don't have to pay any when it comes to it at please its sitting there ready and you don't have to struggle to find it. The way I see it is that part of my pay is not my money and so therefore I put it aside ready for the person whose it is to take it (obviously not literally!) if you pay nothing then you get annual bonus too! I personally put 20%. You may feel you can't afford to right now but it will feel worse when you have a whole years bill to pay and you have not allowed for it. Even 5% like someone else suggested would feel less painful. I can't imagine you would pay anything in your first year especially as its only part of a year by the way so maybe try and get you r head around it ready for next year? X

Very good advice thank you

[clairer]

Yes Cathtee is correct submit the paper tax return by October for the Sept 13- April 14 period. If you file it online the deadline will be Jan 15. I didn't pay any tax for my first years earnings, or my second. Low earnings!