Thanks honeybee13. I missed that one but, yes, you are correct.

More evidence - if any were needed - that this is a criminal scam of which both HMRC and the police must be notified.

I cringe whenever I read about these sites. 

For example I see several ads for eToro. Looking deeper into it you see this sort of feedback ....(ignore the good reviews, too general and unspecific)....

eToro Reviews | Read Customer Service Reviews of www.etoro.com (trustpilot.com)

Thank you for your kind words. Much appreciated.

If you have a different issue to raise - not directly related to the above discussion - the the mods would probably advise that you start a new thread/topic.

All the best.

If you haven't registered for a Business Tax Account you may not have one.

 

As your 2020/21 self employed earnings have fallen so dramatically then, yes, it may be a good idea to go through the "SA303" process – as it's sometimes called –and request a reduction in your payments on account.

 

However if you’re having trouble achieving that then it may be simplest if you just file your 2020/21 self assessment Tax Return as soon after 6^th April 2021 as you possibly can. For sure, before 31st July 2021 when that second payment on account is due.

 

Once your 2020/21 Tax Return is filed then everything should be put to rights and you can move on with your life.

 

Good luck.

Might be wise to contact them quickly but, be warned, anecdotal evidence is that HMRC are not always very helpful or generous with TTP ("Time To Pay") deals.

The trouble is the 5% "surcharge". That is going to be levied on sums unpaid at the end of this month and - strictly speaking - HMRC say you must have a TTP arrangement in place "within 30 days of tax due date".

TBH I don't know how they will view your offer but, hopefully, they will understand. Covid and everything.

Best of luck with it all. Let us know what happens if you can.

 

   

No problem. 

I have  to agree with you. It's draft. Yes the filing date is moved back to end Feb but the payment date remains the same.

Yes, if you are good to go then get the wretched form submitted.

As I said before .... they may charge some interest if you pay after Sunday but just make sure you clear it all by end Feb to avoid that 5% surcharge penalty.  

You too.

In that case you need to submit the form then pay them when you can.

 

Pay after 31st January 2021 and HMRC may charge you interest but only at a low rate. It's 2.6% on a simple daily basis.

Unless you owe them HUGE sums then pay it off in February and the interest shouldn't be much. If it's small enough they may even write if off if you don't pay it.

What you need to watch is that it's all paid off by the end of next month.

 

At the end of February 2021 HMRC levy a 5% surcharge on certain unpaid amounts. You don't need that bill on top of everything else.

All the best.

My advice - submit the completed Tax Return first. Then worry about who owes what to whom. That's dealt with separately from the form itself.

Have you checked your account with HMRC to see what they owe you (or you owe them) as of today?

What's the situation?

A few thoughts.

 

1. Providing those percentages are accurate that should be fine.

 

2. There is no need for an actual signature on the form. Just submitting it valid enough.

 

3. Are you sure the form asks you to mark the box if your income is OVER £6365? I think you may have misread. The entry is usually needed if your income is UNDER £6365 AND you still want to pay Class 2 NIC voluntarily.

If your income is greater than £6365 I don't think you need to mark that box.

 

4. Remember - the filing of the Tax Return itself is handled by one section of HMRC, different from the section that tracks your payments. The Tax Return does NOT want to know about any money you sent to HMRC. 

The reference to  "underpayment or underpayment from previous years" refers to PAYE tax codes where you are in employment. In short this box does not refer to you, as a self employed person,  and should be left blank.

Your various overpayments from the past and "payments on account" for 2019/20 will be processed by the collection department computers after your Tax Return is submitted.

If all goes as it should then everything will come out in the wash.

From what you describe I think you still have that £800 credit on your self assessment account. If so HMRC should use that credit to cover the £400 you say is now due leaving £400 credit remaining on your account.

Bottom line - submit the Tax Return THEN go into your account a day or two later to check the balance owing to them  or repayable to you.

 

Good luck.

No problem. Glad we helped.

The choice is yours - yes, you can reopen the 2018/19 Return and resubmit it online - corrected - by the end of this month to include that overlooked expense.

Alternatively you can include it in your 2019/20 Tax Return declarations if you wish.

 

Obviously the first action will ensure both Returns are more accurate.

i've often seen this now and again when they inadvertently overlook something. It's fairly usual practice.

Once again .....good luck!

One little thought that may help alleviate that pressure.

Remember that, after you've filed your Tax Return, you have 12 months (to 31 Jan 2022) to re-open/amend it, claim any more expenses overlooked - or fix any other errors - and re-submit the corrected Return online.

So long as your re-submission does NOT trigger additional tax/N.I. bills then the re-submission itself won't cause any fines or penalties.

Get the Return filed as accurately as you can, and pay whatever tax/N.I. is due, by the end of this month THEN, if necessary, reopen the Return to amend/re-submit asap after that.

Good luck with it all.

Research is important. I agree there are many sites offering information and, sorry to make matters worse (possibly), but, if you do form a limited company you also need to keep an eye on "disguised employment", "IR35" implications.

Again there are many sites offering advice and explanations about IR35 but, in essence, this is the basics of it .....

IR35 for Dummies. It’s hard to go on Linkedin these days… | by Genesis | Medium

Ticking time bomb is spot on.

HMRC have already challenged various sectors of the economy, and their "self employed" assertions, including the TV/film industry, agency workers, plumbers and other areas of the construction industry.

Their examinations are not likely to stop any time soon so keep it in mind.  

Stay safe.

Thought you might. Well, you are now aware of what HMRC has in their minds so you are at least forewarned.

Good luck with it all. Just make sure you keep some sort of spreadsheet etc for your income and expenses. It's your call how simple or complex your records are.

Remember the object of this - you are signing a Tax Return that you can substantiate is as accurate as it can be to "the best of your knowledge and belief".

I see. You appear to be under the associate agreement but everyone here knows that HMRC are reviewing ALL situations where someone claims to be "self employed". Dental practices are part of this review and HMRC have been actively looking into dental agreements for at least the last two years.

You must be very, very cautious about the agreement between you and the practice principal. When cases have come to court (often under employment law not specifically tax law) differing decisions have been made. Not all dental agreements are the same.

The manner in which you and the principal work together may be the "nature of the industry", as you put it, but things can easily change. The definition of "employed" is under huge scrutiny by HMRC at the moment. 

You probably don't bill patients directly for  the dental services you provide to them, most likely you don't use your own equipment/tools/materials to carry out your work (a basic staple of all self employed workers) and you say you don't issue invoices for your work (again, a basic staple of self employed workers).

 

You also say you are allowed to hire someone else to carry out your work. This is called the "right of substitution" but, unless this actually happens, and you pay someone yourself to carry out your work, then HMRC will disregard this self employment indicator.

If you are working under a standard agreement you are also probably obliged to turn up for work to the surgery during times stipulated by the practice principal and are paid on a rolling monthly basis (less contributory costs to running the practice).

You can see how this is a minefield especially in light of any future HMRC decision.

All that said, if that's how you are required to work, and HMRC are not challenging it right now, then I guess you will carry on but I would still urge you to get specialist TAX advice for this. How to keep records of your business income and expenditure will be straightforward but the tax issues may be fraught with danger.

Good luck with everything.

bitemarx - one thing that worries me about this is your statement that the person/organisation hiring you has demanded that you work as self employed.

You are either self employed or employed. Fact. it's not a "choice". If the manner in which you work indicates that you are employed then that is what you are.

 

If you work in a situation as self employed whereas, in reality, you are actually employed then you could be on dodgy ground. You ought to seek proper professional advice from a chartered tax advisor (CTA). Not someone who tells you to "come back later". What tax advisor would say that? Are they qualified? Sounds very unprofessional and unhelpful to me.

You need proper guidance.

Appeals are possible but need to be made in writing within 30 days to be considered.

 

https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf307

About three quarters of the way down ....this .....

Appeals against the imposition of a surcharge

Section 59C(7) to (10)

The taxpayer may appeal against a surcharge, but must do so within 30 days of the date on which the surcharge was imposed.

In general the normal review and appeals procedures apply (see ARTG2100), but the grounds of appeal are confined to showing that the taxpayer had ‘a reasonable excuse for not paying the tax’ on time.

If it appears to the tribunal that throughout the ‘period of default’ (that is the period from the due date to the day before that on which the tax was paid) the taxpayer had a reasonable excuse for not paying the tax then the surcharge will be set aside.

But if there was no reasonable excuse the imposition of the surcharge will be confirmed.

There is no formal definition of ‘reasonable excuse’, but an inability to pay the tax due shall not be regarded as a reasonable excuse.
 

Unless you have some sort of proof that you posted your cheque instead of paying online, or some other "reasonable excuse", then you may have difficulty avoiding the 5% surcharge.

Good luck.

paper by end december 2013 i think.

Not December. It's 31st October if you file on paper.

 

Is it really as easy as costs-sales=difference when it comes to doing the book keeping.

No. You would be wise to get some professional advice to set you on the right track even if you do things yourself later on.

 

Also i have been paying the £2 something a week in national insurance, but my net profit is well below 5k, can i claim back what i have already paid in NI while ive been self employed.

Maybe.

 

As your income is low you may be thinking of the NI "Small Earnings Exception" (SEE).

 

Look here for basic advice on how NI works ....

 

http://www.litrg.org.uk/low-income-workers/self-employed/checking-your-national-insurance-contributions-nic

 

The SEE is under the section about Class 2 NI payments.

 

For a refund you should write to HMRC confirming:

 

your National Insurance number

you want a refund because you had low earnings

the tax year the refund is for

your earnings - eg, a copy of your accounts for the tax year

 

To have qualified for the low earnings exemption your earnings must be below £5,315 for the 2011/12 tax year or £5,595 for the 2012/13.

 

To get a refund for the 2011/12 tax year the deadline was 31st January 2013.

 

For the 2012/13 tax year it’s 31st January 2014.

 

HM Revenue & Customs

National Insurance Contributions Office

Self Employment Services

Benton Park View

Newcastle upon Tyne

NE98 1ZZ

 

Self-employed helpline.......0845 915 4655

[Mon to Fri 8.30am to 5.00pm]

 

Good luck.

I have literally no idea jow to go about being self employed.

You simply start work and keep records of the income and expenses of your new self employment.

 

You are required to tell the taxman that you have started. This will tell you what to do .....

 

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

 

At the end of each tax year (5th April) you will be required to file a Tax Return giving details of your income, expenses and self employment profits and any other tax related income & gains.

 

Send invoices for all work you do and claim as many expenses as you can.

 

Remember you can claim any expenses you wish so long as the are clearly for your self employment work ONLY and result in no other personal benefit to you.

 

You need to be aware that some expenses are not allowed at all such as entertaining clients.

 

What about tax credits?

If your income is not large then you may be able to claim some working tax credits etc. However, to qualify for working tax credits, you will need to be working more than just 10 hours a week.

 

Information on those benefits here ....

 

https://www.gov.uk/working-tax-credit/overview

 

Is their funding available?

I dont know of any funds or grants for someone in your position but maybe other members here do.

 

What about starting university?

Don't understand. What exactly are you asking?