7mths of working and have a tax bill !!

[zoe2010]

Everyone says you won't pay tax in your 1 st year of working i must be an acception grrr i dont understand where my accountant has got his figures from as self employed my earnings were just under 9,500 plus 2,200 being employed and paying tax. I've been stumped with a tax bill for £358 !! I had all my start up expences plus all my outgoings that brought it under the tax allowance... ...... still confused !

[wendywu]

Does not sound right to me.

No doubt someone who knows what they are talking about will be able to give you some sound advise soon.

[MrAnchovy]

i dont understand where my accountant has got his figures from

Well the only place your accountant should have got them from is you! Some accountants are not very good at explaining things, but you are paying for a service so you should keep asking questions until you understand what is going on.

[Zoomie]

You may find it is the combination of self employed and employee income that has caused this, and if you paid tax in your employee job, then this might be coming off the figure you have to pay.

But do get hold of your accountant for a full explanation.

[Chatterbox Childcare]

You have to pay tax on any profit or earnings over £6735 I think it was last year.

The accountant can only take figures that you gave him so have a look at what your expenses are and go back and ask him/her

[sillysausage]

You need to remember that you will have used up some of the tax free allowance whilst you were employed.
As a rough self check on what your accountant has worked out you can to add together your gross income from childminding and your gross income from your previous job. From that total deduct your expenses and the personal tax allowance. This will leave the amount of money you should pay tax and class 4 national insurance on. Finally once you've worked out how much tax is due, you can deduct the tax previously paid in order to get the final balance (roughly). I'm not sure where any national insurance contributions as an employed person fits in but this can give you a rough idea of the accuracy of your accountants figures.

[zoe2010]

Thanks everyone off to see him in a few hours so will find out when i gave him my figures i had it down to 4,500 ish plus my 2,200 in another job still brings it in at 6.700. gonna be asking lots of questions and a breakdown hopfully i'll be a little happier later at the end of the day i suppose it is what it is lol but it still doesn't make me not to want to rant and rave !

[mum2two]

I would've thought you should be due a rebate.

Hubby was employed last year for a few months at the beginning of the tax yr, earn't more than you. Can remember what our final self-employed figures were, but when I submitted it it came up with a refund due for him. (I still had to pay tax! :-( ) Double checked everything before I finally submitted, but it was all right as far as I could see.

Money was in our account within a week!

I'd def ask, as even with both jobs you are under the personal allowance, so shouldn't be paying anything. Profit was under the amount for paying the extra NI payments, so nothing there either. From what you've said, I would've said you should be getting a refund of the tax you paid whilst employed.

Are you sure the £358 figure he's given you is a bill, and not a refund amount due?

xx