Tax Returns 2020

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#42

Sorry to depress you all with another bump.

Just sorted out this year’s return for the first proper year of self-employment and actually having taxable earnings. This ‘payment on account’ thing is a nasty surprise, eh? Had no idea it was coming (although re-reading this thread I probably should’ve, oops) but fortunately have enough to cover it, and the second July payment.

The thing I don’t get is how it keeps rolling over. All going well I’ll no longer be freelance/self-employed for the 2021-22 tax year - how is that going to work in a year’s time if there’s nothing extra to be taxed on in advance?

#43

You can reduce payments on account (to whatever figure you decide) if you’re tax/earnings are gonna be lower (though may be charged interest if reduce them too low)

Or if you enter the date you ceased s/e on 20-21 return, you shouldn’t be charged 21-22 payments on account.

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#44

Great, thanks. Makes sense.

#45

If I accidentally leave out some expense stuff from one tax year can I roll it over to the next? Completely forgot to include stuff like my work mobile.

#46

Not really, you can amend your previous return for up to 12 months (and if you miss that can make an ‘overpayment relief claim’ to get repayment of tax you overpaid)

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