Do I have to pay now towards next years tax?

[Sarah Louise]

The Inland Revenue want me to pay half what they've estimated next years tax to be now? Does anyone know if i have to? Never have done beofre just paid in January what I owe for previous year.:mad:

[Chimps Childminding]

Hi, yes I have had to do this, first year ever!! I had to pay £800 for last tax year, and then £400 at end of January, and another £400 in July for the tax year starting this April!!!!!! Apparently, they estimate it on what you earnt last year, assuming that you will probably earn the same (or more) next!

Did ring and say I had lost (not literally :laughing: ) some children, and so wouldn't be earning as much, but didn't make much difference unfortunately. Just going to get my accounts done asap after 5th April so hopefully I won't need to pay the next lot in July!

I think it is if you had to pay over £500 the previous year!!

Hope that helps!

[Chanelle]

Anybody know how tax works if you are already working? i work mornings and pay tax already ... do i just do a self assessment after the first year ???

[Sarah Louise]

Anybody know how tax works if you are already working? i work mornings and pay tax already ... do i just do a self assessment after the first year ???

You know you have to register with the inland revenue as self employed and will probably have to fill in a self assessment. Sure you have 3 months to do so or they fine you £100.

[anneriddington]

As I understand it if you pay over £300 in tax you have to pay 50% on account for the forthcoming tax year. You can opt not to pay anything on account, as long as you let the revenue know, however, if you do need to pay tax for next year and you haven't paid on account they can charge you interest for the amount due for the full year.

[Chanelle]

Okay , I will definatelly do that ... should i do that now or when i get my certificate ?

[Juddster]

anneriddington As I understand it if you pay over £300 in tax you have to pay 50% on account for the forthcoming tax year. You can opt not to pay anything on account, as long as you let the revenue know, however, if you do need to pay tax for next year and you haven't paid on account they can charge you interest for the amount due for the full year.

Thats correct i haven't earnt as much this year so rang and opted out paying up front towards forthcoming year. As i dont think i will owe any tax as my profit is below the figure your allowed to earn before tax. But was warned i would have to pay more if it works out i do owe as they add intrest. Hope i made the right move :eek:

[huggableshelly]

wow I've never paid over £300

the tax year just gone was the first year I had to pay anything at all.
I shouldnt be paying anything this coming tax year either.

[FizzysFriends]

Anybody know how tax works if you are already working? i work mornings and pay tax already ... do i just do a self assessment after the first year ???

Works the same, just means that your morning job will use up your free tax allowance so you will pay tax on everything you earn from minding.

[Rubybubbles]

I aid over £300 last year and under £300 this year (think the tax bracket moved up?) I didn;t have to pay in advance though

[Chanelle]

Okay, Thank you Fizzy ... I am not very knowledgable when it comes to tax so think a course may be in order lol

[Annie_T]

yep they changed it to pay half year oin advance last year (i think)