Self employed tax?

Question

Gordon Brown wants me to pay 50% of the total of this years tax bill extra on account towards next years tax bill, i.e. if my bill is £4000 he wants me to pay another £2000. Will the government knock the intrest they make on my money, that I will have lost, off next years bill, or will they send me a cheque for the intest I should have made.I ??????????

Answer 1

Work it out. Compared with PAYE it's still a better deal. For each tax year you make two payments on account: one in January and one in July. The payment we made last July was for the tax year ending in April 2006. If you overpay they do pay you interest, but if you think that you are not going to make as much profit this year as last you can apply to make a reduced payment. Problem is that if you mess up the calculation and do make as much profit as the previous year they will then charge you interest.

I can't remember exactly when self-assessment started but I certainly get less hassle from the IR now than I did before.

Answer 2

No way, you can ask for repayment for the overpaid tax, or they will hold onto it and reduce your next year tax bill. I've been self employed for over 20yrs and so long as its not a huge amount of money, I've let them keep it, as it feels better that you don't have to find the total amount when its due

Answer 3

isn't it better then your pay as you earn (PAYE).it's a assessment of your earnings for the coming year ,
you are not asked to pay a lump sum a year in advance ,
but you can if you want ,
you asses what you think your earnings will be for the coming tax year ,and pay accordingly ,you can if you wish
at any time re asses your earnings if your circumstances
change at any time ,,

Answer 4

No they will not pay interest. However, if your payment is late they will charge you interest...even on the sum you are paying in advance. Good to be British ain't it.

Answer 5

doubt it

Answer 6

I somehow doubt that.....