Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Crystal-clear on December 18, 2011, 04:26:53 pm
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they worked out how much i owe for 10/11
the payments are a bit different this year little confused will have to call them.
last year it was easyer little bit confused this time maybe cos i made more for 10/11.
anyway they are looking at 3 payments so it seems,
a first payment with no due date for the year 11/12?
then the full amount due by 31 of jan? which includes the first payment for 11/12?
then a second payment due by july 2012 im guessing they are estimating my next years earnings and want as much as possible up front? along with the actualy money im giving them!
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Sounds to complex for me I just save as I earn then pay in april for year....
Job done ;D
daz
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they worked out how much i owe for 10/11
the payments are a bit different this year little confused will have to call them.
last year it was easyer little bit confused this time maybe cos i made more for 10/11.
anyway they are looking at 3 payments so it seems,
a first payment with no due date for the year 11/12?
then the full amount due by 31 of jan? which includes the first payment for 11/12?
then a second payment due by july 2012 im guessing they are estimating my next years earnings and want as much as possible up front? along with the actualy money im giving them!
In your first year you make a "first payment on account" in January. Then a "second payment on account" in July. Your accounts are submitted in April of the same year so HMRC can calculate what you should really have paid.
The next January they adjust accordingly, so if you paid too much they will make a refund or if not enough they will ask for the balance. At the same time (January) you make the "first payment on account" for your second year, a "second payment on account" in July and then the reconciliation is the following January
And so on.
When HRMC get a clear picture of your trading pattern, they will be able to project your tax liability fairly accurately.
If you have an unusual drop in turnover (sickness, business problems etc) you can apply to have a "reduction in payments on account".
If afterwards your accounts prove there was no drop in income you will have to pay the extra you would have owed, plus the HMRC can fine you.
Best advice: Pay an accountant to do it all for you.
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Hi Ian, and thanks
Your prob right at this stage i think i will pay an accountant,
last year i only paid once they asked nothing for july its the first time they are asking about this july carry on,
so in simple terms they are charging me in advance? so what happens when i do my return for 11-12 ive already paid x amount so i have less to pay?
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they worked out how much i owe for 10/11
the payments are a bit different this year little confused will have to call them.
last year it was easyer little bit confused this time maybe cos i made more for 10/11.
anyway they are looking at 3 payments so it seems,
a first payment with no due date for the year 11/12?
then the full amount due by 31 of jan? which includes the first payment for 11/12?
then a second payment due by july 2012 im guessing they are estimating my next years earnings and want as much as possible up front? along with the actualy money im giving them!
In your first year you make a "first payment on account" in January. Then a "second payment on account" in July. Your accounts are submitted in April of the same year so HMRC can calculate what you should really have paid.
The next January they adjust accordingly, so if you paid too much they will make a refund or if not enough they will ask for the balance. At the same time (January) you make the "first payment on account" for your second year, a "second payment on account" in July and then the reconciliation is the following January
And so on.
When HRMC get a clear picture of your trading pattern, they will be able to project your tax liability fairly accurately.
If you have an unusual drop in turnover (sickness, business problems etc) you can apply to have a "reduction in payments on account".
If afterwards your accounts prove there was no drop in income you will have to pay the extra you would have owed, plus the HMRC can fine you.
Best advice: Pay an accountant to do it all for you.
-
Hi Ian, and thanks
Your prob right at this stage i think i will pay an accountant,
last year i only paid once they asked nothing for july its the first time they are asking about this july carry on,
so in simple terms they are charging me in advance? so what happens when i do my return for 11-12 ive already paid x amount so i have less to pay?
You do not pay in advance, this January 2012 you are paying tax on earnings April 2010 to April 2011
If you pay tax in July 2012, that will be an advance on the April 2011 to April 2012 earnings so you will still be in arrears