Personal Tax Returns

[SallyAnne]

Serious thread number 2


I got my Tax Return stuff through from my accountant over Xmas (which I've ignored until today, as you do!)

It has figures on it for year ending 2007 (as I'd expect), but also for year ending 2008!!

Is this the new norm? Estimating personal tax in advance? I dont think they've ever done this before - anyone else noticed it?

I have asked them, but it'll take all day to get a reply and I have working hours to pass before then...

[DimPrawn]

IR36.

Now everyone is a "deemed" time travelling millionaire and has to pay tax on income they might have earned in the future, as if they were a permie with a flux capacitor up their @rse.

HTH

[Bumfluff]

Serious thread number 2


I got my Tax Return stuff through from my accountant over Xmas (which I've ignored until today, as you do!)

It has figures on it for year ending 2007 (as I'd expect), but also for year ending 2008!!

Is this the new norm? Estimating personal tax in advance? I dont think they've ever done this before - anyone else noticed it?

I have asked them, but it'll take all day to get a reply and I have working hours to pass before then...

May be you mean tax on account, when I do my return they say based on last year 06-07 I will owe in 07-08 x amount. On Jan 31st I pay anything I owe from 06-07 and then my first payment for 07-08 as well, Jans 31st this year is going to cost me £17k

[oracleslave]

IR36.

Now everyone is a "deemed" time travelling millionaire and has to pay tax on income they might have earned in the future, as if they were a permie with a flux capacitor up their @rse.

HTH

[AtW]

IR36.

Now everyone is a "deemed" time travelling millionaire and has to pay tax on income they might have earned in the future, as if they were a permie with a flux capacitor up their @rse.

HTH

Rubbish!!!



threaded

[ratewhore]

It's probably to do with payments on account. HMRC take the view that, whatever your SA tax bill is this year, next year will be the same and make you pay it in two chunks, this month and July.

I particularly like this bit - if you think you'll earn less next year you can apply to have the payments on account reduced. If however, you earned more (and consequently generated a higher tax liability than you thought), expect the usual fines and interest payments...

[SallyAnne]

It's probably to do with payments on account. HMRC take the view that, whatever your SA tax bill is this year, next year will be the same and make you pay it in two chunks, this month and July.

I particularly like this bit - if you think you'll earn less next year you can apply to have the payments on account reduced. If however, you earned more (and consequently generated a higher tax liability than you thought), expect the usual fines and interest payments...

Thanks ratewhore - yes that's what it is - exactly that.

So this is the new thing then?

We're basically having to pay upfront based on what we earned last year?

FFS

[cailin maith]

Thanks ratewhore - yes that's what it is - exactly that.

So this is the new thing then?

We're basically having to pay upfront based on what we earned last year?

FFS

Still can't find that thread from before Christmas...

The first year is the worst as you get hit for last year and the first chunk for next year. But it will even it's self out after this payment..... allegedly

[ratewhore]

You may find HMRC also give you a 'K' tax code. This effectively means you lose all your tax free allowance and they also add a theoretical few grand to your salary to tax you on. They are basically trying to claw the extra tax back through PAYE as well as the payments on account.

I generally get my accountant to change my tax code back, but that's just me.

[Bumfluff]

It's probably to do with payments on account. HMRC take the view that, whatever your SA tax bill is this year, next year will be the same and make you pay it in two chunks, this month and July.

I particularly like this bit - if you think you'll earn less next year you can apply to have the payments on account reduced. If however, you earned more (and consequently generated a higher tax liability than you thought), expect the usual fines and interest payments...

But if you end up over paying I thought you got your £ back plus interest ? If that is the case whats the interest rate they give you ? Wonder if its actually worth over paying. I pay on account recon this year I will end up over paying based on 06-07.

You should have the money anyway for the tax on account, for example my payment on account for Jan 31st 08 will cover the income I earnt from April 07-Oct 07.