Hiya just trying to sort stuff out and looks like I'm going to owe a lot of tax! Does anyone know what happens if you can't afford to pay by 31st January? Anyone ever experienced this??

Are you sure you've worked out all the expenses you can claim for? There's a list in free resources. If you don't pay on time I am sure you will be fined so I would have another look at figures. There must be something? Hugs

I've looked and looked!! Would be ok if they didn't charge and extra 50% on top for next year!!

I think you can call them and arrange a payment plan.

This happened to me once then I realised I had massively underestimated my expenses. I spoke to other more knowledgeable childminders and they told me all the things extra I should have claimed for. This equated to about another £4000 as I had a car and so much more I never realised I could have put through. I phoned the tax office and told them everything. I had to make an amendment and it reduced the amount of tax due considerably. I suggest you do the same! In my experience I have not known many others who earn enough to pay the other 50% on top. That's the crucial thing really, to aim to get your expenses below that amount (can't remember what it is sorry) to avoid doing it. I think if every little possible thing is claimed for correctly this can easily be done.

I'm sure I read somewhere that if you owe less than £1000 tax you don't have to make payments on account (I think that's what they call it when you have to pay the following years tax early) but I could well be making that up!

Thanks for your replies! Going to go over everything with a fine tooth comb on the weekend!

If you don't make your payments you will be charged interest from day 1, no exceptions but you can ask for a payment plan.

If you want some help with expenses then please pm me

Have you actually filed your tax return yet, or are you just going by the figures you have worked out?
You pay 20p per £1 for profit over your taxable allowance, not on your total income (Some people get confused about this)

so to pay £1000 in tax you would have to show as profit £14,440
Which, when you then deduct your TA of £9440, leaves you £5000 taxed at 20p per £1

Have you deducted your personal allowance for last year (£9440)
Have you deducted the 10% wear and tear from your total income?
Have you claimed your allowance for council tax, rent if applicable, gas, electric, water
Mileage @ 40p per business mile
Meals for minded children
Toiletries (nappies, wipes, loo roll etc), cleaning materials
Stationary - paper, ink, stamps, envelopes
The list is endless :thumbsup:

I have had this problem before. Easy to sort out. I pm you if you want to talk. You have 6 months to get some money ready. Don't worry. Have a plan before talking to them.

Thanks so much everyone! Feeling a lot better now! I'm just such a stress head when it comes to owing money! Time for a cuppa!!

Hiya just trying to sort stuff out and looks like I'm going to owe a lot of tax! Does anyone know what happens if you can't afford to pay by 31st January? Anyone ever experienced this??

It depends on what you mean by a 'lot of tax'...if you have earned a lot of money then you pay tax accordingly...if not you pay less

CMs should really save towards tax every month...tax is due end of January and end of July...put a little amount in a CMinding savings accounts then you will never have a nasty surprise...you can't owe HMRC money unfortunately