Expenses self employment

[taxhelper]

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.

Edited January 20, 2021 by taxhelper

[taxhelper]

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!

[taxhelper]

No problem. Glad we helped.

[taxhelper]

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.

[taxhelper]

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?

[taxhelper]

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.

[taxhelper]

You too.

[taxhelper]

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.  

[taxhelper]

No problem. 

[taxhelper]

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.

 

   

[taxhelper]

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.

[taxhelper]

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.