Letter from HMRC

[Beautyw]

Hi

I received a letter from the hmrc with a direct debit slip on the bottom, when I file my tax return does whatever I have to pay them be paid through this and does it have to be paid by 31st?

I'm a bit confused as I was told you pay your tax in quarterly installments, is this wrong?

 

[Beautification]

Ii got one of these aswell!

 

[stirthemud]

Hiya,
Well, I have an Accountant to do my Tax Return but I get the letter with the pay in slip attached, I pay it yearly, the Accountant tells me what to pay and I pay it directly to the Tax man.(my National Insurance I pay quarterly though, is that what you meant?)kx

 

[Rapunzel]

Hi you can pay it via the slip or if you do your tax return online there is a section where you cna pay online with your card.

Did you know you can also spread your tax out over the year and pay by direct debit they average what you think you will pay at the end of the year and set up a DD if you have over paid when you do your tax return they send it back to you

HTH

Deb
x

 

[Miss Pink23]

Yes Rapunzel is right.
You get the letter after you haver filled in your return online and you can either pay with the slip or online itself. Or you can ring up and pay over the phone which I did.
You can set up a dd for your ni (if you pay it).
And yes, it has to be paid by the 31st Jan.

 

[Beautyw]

Ok, I'm still confused...sorry

I pay my NI by direct debit monthly
I haven't filed my tax return yet but got this letter
When I file my tax return and it says I owe £xx do I have to pay it all before the 31st or can it be paid monthly?

Sorry I've been told differently so now I'm a bit worried incase the tax is loads and I don't have enough to cover it - this is my first ever tax return

 

[Susie H]

Ok, I'm still confused...sorry

I pay my NI by direct debit monthly
I haven't filed my tax return yet but got this letter
When I file my tax return and it says I owe £xx do I have to pay it all before the 31st or can it be paid monthly?

Sorry I've been told differently so now I'm a bit worried incase the tax is loads and I don't have enough to cover it - this is my first ever tax return

Hi hun, I haven't done one of these for a couple of years so there might have been changes but, they put the slip there as an option, they don't care how you pay it, so long as you do. For your first year I would expect you will show a loss, not a profit. You should include all your training costs, your work clothes, equiptment, stock these are your out goings.
Seperatly you have what you have charged all your clients, for services, for retail products. You take what you have paid out away from what you have been paid and that is your before tax profit.
As I said, it is expected that in your first year you will find this figure is in minus, so no tax to pay and what ever the minus is, carries forward to your next year.
If by some chance you have made a profit then you need to look at what your personal allowance is. I think it's about £6000 but as I said, I haven't done this for a while anyway, what ever that amount is, is the amount you can earn before you pay tax. So if you made £10000 then your taxable income would be £4000. There is also N.I 4 to pay but I don't know if this is a set amount or a % of your taxable income.
Rather then getting in a panic, find out where your local tax office is and make an appointment to see one of the tax advisors. They are very friendly and helpful and will be able to talk you through all of this and it's free.:hug:

 

[EMMA AT ELITE]

Ok, I'm still confused...sorry

I pay my NI by direct debit monthly
I haven't filed my tax return yet but got this letter
When I file my tax return and it says I owe £xx do I have to pay it all before the 31st or can it be paid monthly?

Sorry I've been told differently so now I'm a bit worried incase the tax is loads and I don't have enough to cover it - this is my first ever tax return

Ok, so you have got me confused as well now :lol:
NI - I pay quartly, you pay monthly
This is different this is your tax bill which should say on it when it has to be payed by.
I got one of these letters last year letting me know that I need to pay x amount by the 31st Jan 2011, then I think it was at the beginning of this month or maybe last month that this bill came through with the paying in slip (which I payed at the post office)
I would assume you would have to pay ALL of this by the end of this month. As I would doubt they will let you pay off last years tax bill during a new tax year.
Just a little tip for next year - If say this tax bill is £120, divide into 12 is £10 - put £10-15 aside every month to cover next years bill.
I hope that helps, & I havent confused you even more x:hug:x

 

[Beautyw]

Ok, those last two post have made it clearer, thank you

Its all making sense now lol

 

[Lorrainelola]

Just to throw something else into the pot. I got a letter saying that my NI will be taken every 6 months and not monthly as I am currently paying. Has anyone else had this letter?

 

[Beautyw]

yes i got this letter too!!

 

[absolutly fab!]

Ok, I'm still confused...sorry

I pay my NI by direct debit monthly
I haven't filed my tax return yet but got this letter
When I file my tax return and it says I owe £xx do I have to pay it all before the 31st or can it be paid monthly?

Sorry I've been told differently so now I'm a bit worried incase the tax is loads and I don't have enough to cover it - this is my first ever tax return

sounds all ok , but donr forget u can allways call the IR they are allso happy to help as well as take u hard earned cash ! u can also bk appt and they can do the return for u , if u take all your figures in , allways better to get it right first time .

 

[topcuts]

hi
i pay both my ni and tax monthly
i set up a payment plan that took into consideration paying the amoujt i owed from last year to be paid over 4 months then a top up ready for this year over the next 4 months then 4 months of the year "off" altho they seem to have muddle a bit up but its a nice way to do it.

 

[hippy-chick]

yes, definitely make an appointment to see the tax people, they filled in my first tax return for me whilst I sat there.
the next year I did it myself online, and then I got an accountant as I wasn't sure if I was doing it right.

Remember your personal allowance, then any outgoings come off your tax bill.

Also set up a direct debit to pay into a separate account to cover a tax bill for next year so that you haven't got to find the money from anywhere as its already sitting there.

 

[*Ang*]

Sorry to jump in and hijack the thread geeks but I have a quick question. I set up my business in July, and I have registered with HMRC online to fill in forms etc. My self assessment link has been activated but I am guessing I do NOT have to fill in a self assessment tax return as the earnings are up to April 2010? Can someone with more years business experience just clarify for me please.

Anything to do with the taxman scares the life out of me for some reason :irked:

 

[TracyS]

Sorry to jump in and hijack the thread geeks but I have a quick question. I set up my business in July, and I have registered with HMRC online to fill in forms etc. My self assessment link has been activated but I am guessing I do NOT have to fill in a self assessment tax return as the earnings are up to April 2010? Can someone with more years business experience just clarify for me please.

Anything to do with the taxman scares the life out of me for some reason :irked:

Nope - you're fine. Your deadlines will be post April 2011 and are many and various depending on how you want to complete them (i.e online, paper return etc). Do an HMRC Workshop, they really are good for helping you to get things clear.

 

[skymark]

I have the same letter. Its a reminder letter that the deadline is due. You can use the payslip to pay the tax owed once its worked out if you are paying by cheque or post office etc.

If you are stuck on something while doing it then give them a call as its better to ask than to have to pay the fine by being late.

I need to get mine done online. Im such a lazy cow sometimes lol.

 

[*Ang*]

Nope - you're fine. Your deadlines will be post April 2011 and are many and various depending on how you want to complete them (i.e online, paper return etc). Do an HMRC Workshop, they really are good for helping you to get things clear.

Thank you Tracy :hug:

 

[B-Beauty]

Sorry to jump in I was at a course with HMRC last week they told us you are not allowed training costs under expenses only if your profession depended on it for instance if you have once a year cumpulsory training to keep your proffessional status.

 

[Roxi]

Hi I got my first ever tax bill this year. Unfortunately I haven't got the money to pay for it by 31st Jan, I phoned hmrc and set up a payment plan. I paid a large sum off and then I will pay £150 a week until it's cleared. There is interest added but it is fairly small at 3.5%. As long as you show willing and can pay an amount off per week or month they are extremely helpful.

Also this tax year I have had 4 months maternity and am now part time rather than full time so I calculated what my average takings would be for new tax year, minus expenses and mileage and then minus personal allowance. So then I will only pay tax on that, rather than the original figure they had calculated from my previous tax return. That cut my tax bill down considerably and hopefully next year I will only have a small amount to pay!