[dai]

I got fed up with paying the accountant good money for doing very little, I just completed my online self assessment.
They want all the money I owe by Jan 31st, nothing new there, but now they want half as much again on account for 2110/11. This is also payable by 31st Jan. They want another payment for the same amount on account 31 July.

Reading this they want the equivalent you paid in tax for 09/10 by 31st July 2111.
I had already paid some on account last July, so I deducted that amount from the payment. It's supposed to be easy, but to be fair I found it quite confusing.

The old bank account is gettig hammered early this year.

[Jeff Brimble]

Sounds about right, if your going to struggle then get in touch with them and tell them now, they may give you terms to spread the load for next years payment (and possibly this last years payments).

[LWC]

Paying on account, i really wasnt ready for the first one i had of them, seems daft to me, paying tax up front for predicted earnings.

[Clive McDonald]

dai
I don't get some bits either.

To make things easier copy how they ask for the expense types and start doing your books that way.I put a table up once showing how it should be done.

[Sir Squeaky]

Paying on account, i really wasnt ready for the first one i had of them, seems daft to me, paying tax up front for predicted earnings.

Yeah caught me out the first time, but once it's done it's back to normal payments, just a year ahead.

Except if you do like did and have a year with a lot of expenses and it drops under the threshold, so I had almost nothing to pay last year.
What that means is this year I'll have to do the double one again.

Don't see why we can't just pay for what we've done like it used to be.

[LWC]

Exaclty the same for me squeaky, i spent loads last year on the vivaro so didnt have much to pay so im looking forward to this year, not

I agree, why we cant just do the years work and pay at end. Just another way for them to make money, have our money up front, stick in high interest accounts and make loads of money on it.

[dai]

I suppose the best way is to submit our returns in April, pay the bill and it's done with.

[paul saunders]

When you file your tax return "online" it does not automatically take into account any payments that you have made "on account". If you file your return, and then wait for a week or so (this is what I did) they will update the actual amount that you need to pay.

[Ian101]

  no one told me we had to pay tax   

[mikecam]

Tax credits, ya can't whack 'em !!!

[Sunshine/Cleaning]

The tax has always been paid in the same way and no-one pays tax before you earn it.

You start work 08-09 year
You submit your accounts in 09
You pay in Jan 10 the full amount for 08-09
You pay half of 09-10 in Jan 10(estimated based on 08-09, you have already earnt from April)
You pay the other half in July 10

The following year you pay half in Jan and half in July

At no point do you pay tax you have yet to earn.

If you earn £'s more after being established you have to pay a balancing payment in the January
If you earn less it will be reduced

[Sunshine/Cleaning]

If they only ask for one payment in Jan that will be because it is a small amount below £1000 I think, anything above this is split.

[G Griffin]

The tax has always been paid in the same way and no-one pays tax before you earn it.

You start work 08-09 year
You submit your accounts in 09
You pay in Jan 10 the full amount for 08-09
You pay half of 09-10 in Jan 10(estimated based on 08-09, you have already earnt from April)
You pay the other half in July 10

The following year you pay half in Jan and half in July

At no point do you pay tax you have yet to earn.

If you earn £'s more after being established you have to pay a balancing payment in the January
If you earn less it will be reduced

That sounds about right.

[Sunshine/Cleaning]

It makes me laugh that people think that we pay tax before we have earnt it.

[G Griffin]

I changed my tax year to to mirror the calendar year, a while back.
I don`t know if that would help anyone or they still allow it though.

[Sunshine/Cleaning]

It doesn't matter when your tax year ends, they should have your returns based on April-March.

[G Griffin]

My tax return is done from the 1st Jan to 31st Dec.
This option was offered to me a few years ago and I took it up.It doesn`t make much difference and I still get self assessment reminders in March/April.

[Sunshine/Cleaning]

I guess its Year ending between April-March then.

[G Griffin]

I guess its Year ending between April-March then.

Yeah, that`ll be it.
There`s no real benefit; I just thought it would help me keep track of things better.

[clarkson]

 Hi
 They did this because people where having good years and not banking any tax, then the following year if you having a bad year you would not be able to afford the tax bill. So buy paying some on account whilst times are good if you do have a reversal the following year much of your tax is paid.
 
 Stuart is right you have had the income for this by the time you pay it. You do feel it however if you have grown a lot quickly so have a larger balancing payment and larger payments on account.

cheers

 john