Self-Assessment Newbie

The September 30th deadline is for the tax year 2004/2005. If you are going to make gains in this tax year, you'll be expected to declare them September

And then only if you want the Revenue to calculate your tax liability for you from the information provided, otherwise the deadline is

DF

See. Told you I was a newbie! Thanks.

It sounds as though the OP doesn't normally get a tax return. Therefore there would, I believe, be an obligation to at least let the Revenue know by 5th October 2006 that he has an additional income tax liability for 2005/6.

Thanks again for this - I just had a thought that I would like some help in clarifying if you or someone else could help - when the earnings are declared at the end of the tax year, is there interest charged on the tax that would have been paid at the beginning of the year if for example the tax was taken out of a wage packet?

Eg, say I'm taxed on 10 000 newly declared income (gathered throughout the tax year) at the end of the tax year. Do I get taxed the same amount as I would be if I had that income taxed at source as and when I earnt it? Or would I be taxed the same amount, plus interest accrued on not having payed it as and when I earnt it up till I declared / paid it at the end of the tax year? If you see what I mean!

Thanks for any help.

I thought the 30/9 deadline was if you wanted them to calculate the tax *with enough time for you to pay the resulting bill*. You can submit the form after 30/9 and still ask them to calculate the tax; they just don't promise to tell you what to pay before the dealine for paying it. You could, for example, file after 30/9 ask them to calculate the bill but pay some on account to avoid the interest charges.

I always like to let the IR do the calculation so that any error is theirs not mine.

Robert

"Robert" wrote

Why?

Just trying to repeat to make sure I am answering right question:

Person A is employed and earns say 10k and pays income tax by PAYE Person B is self-employed and earns say 10k and pays income tax when he files his return and gets the bill and by the end of the following January at the latest. (ie up to about 20 months after first income of that tax year)

The Income Tax should be the same for both. National Insurance could be different I guess due to employed/self-employed rules - but I don't know about these in detail.

If B is late paying then he will pay penalties and interest. if either is overcharged the IR will repay with interest.

Stands back and awaits correction.

Income Tax is due by 31 January following the year of assessment, even for the self-employed.

Payments on Account may be due, and these attract interest, if paid late.

In message of Sat, 24 Sep 2005, rob. writes

If B is late paying then interest is charged from 1st February. A penalty of 5% of the tax due is only payable if payment is not received by IR till after 28th February. There may also be interim payments due on 31st January and 31st July. Interest only is payable in these if they are paid late.

If A has underpaid (it does happen under PAYE) then the Coding for the year after is usually amended to collect the underpayment through PAYE - no interest is charged.

In either case if there is an overpayment then interest (called supplement in this case) is added to the repayment ONLY if the repayment is made after 31st January following the year of assessment, and then only calculated from 1st February.

HTH

DF

so that any error is theirs not mine. if they come back some time later and say "you paid too little tax because the calkculation was wrong" (as they once did with me) it is better for the error to have been their rather than mine. There's then no suspicion of deliberate error on my part.

Robert

That could depend on the error.

Robert wrote on Fri, 23 Sep 2005

If you use their on-line software, it calculates the tax liability whenever you use it. Is there significant difference between doing so by, or after, the 30/9 deadline?

"Robert" wrote

But they say that you should check their calculations yourself. So, when you've checked them, and found the error but not notified them of it, then they'll be suspicious of you for not having let them know!!

But person B (self employed) would be able to deduct a more generaous range of expenses against his income, thus reducing his tax bill. if he had such expenses I mean. Robert