PostHeaderIcon Tax return

Once you have registered as a self-employed you have to pay tax to HM Revenue & customs.

You should expect to be sent a Tax Return after the end of the tax year (5th April).

Deadlines for completing your Tax Return:


  • 31st October for Tax Returns filed on paper – so for 2008/09 the tax return deadline is to 31st October 2009

  • 31st January for Returns filed by the Internet – so for 2008/09 the tax return deadline is to 31st January 2010

You can fill in your Tax Return in the following ways

  • as above – but an accountancy practice will fill in your tax return on behalf of you.

 

As a self-employed individual you pay tax on the 31st January following the tax year. If your tax bill is over £1,000 you will also be required to make 'payments on account' for the following tax year.

The first payment on account, which is 50% of the last year's tax liability, is due on 31st January and a further 50% is due on 31st July.

Example

The tax bill for 2008/09 is £2,800. This is payable on 31st January 2010. At the same time you will have to pay £1,400 as a first payment on account for 2009/10. This is a total payment of £4,200 on 31st January 2010. A further £1,400 for 2009/10 is due on 31st July 2010. These payments on accounts for 2009/10 can be deducted from the next tax bill due on 31st January 2011.

You can ask for your payments on account to be reduced if you think, for instance, that your profits are falling and the tax due will be lower than for the previous year.

 

 Find out more: http://www.hmrc.gov.uk/index.htm

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