Help! When is my self assessment due?

[jemster]

Please can someone help? I started my business January 9th 2015. When is self assessment due?

 

[Jeff FV]

You will need to do a Self assessment tax return for the tax year 5th April 14 to 4th April 15 by 31st January 2016.

You will have to pay 1.5 times the tax you owe for this tax period (9th Jan 15 - 4th Apr 15) by 31st Jan 16. The 0.5 times tax is tax "on account" for the tax year Apr15 - Apr 16, you would pay the other half of thus tax bill in July 16, although when you submit your 15 - 16 tax return the amount you owe would probably change.

You can do your 5th April 14 to 4th April 15 tax return at any time between now and January - you wont have to pay until January but at least you will know the amount you have to pay. I suggest that it is worth doing your tax return sooner rather than later. Its not difficult, but you may have to ask some questions if this is the first one you have done.

HTH

J

 

[jemster]

Jeff you're fabulously helpful, so many thanks!

 

[UK Contractor Accountant]

Why are yoy showing dates as 5th April to 4th April?

The tax year runs from the 6th April to 5th April.

 

[Jeff FV]

Why are yoy showing dates as 5th April to 4th April?

The tax year runs from the 6th April to 5th April.

Because off the top of my head that's what I thought it was. Sorry I was wrong.

I would have put that the tax year was from April to March but I thought that some pedantic accountant would come along and say it was from April to March, but actually from 6th April to 5th April.

I don't think that it will make too much difference to answering the OPs question.

 

[David Griffiths]

You will have to pay 1.5 times the tax you owe for this tax period (9th Jan 15 - 4th Apr 15) by 31st Jan 16. The 0.5 times tax is tax "on account" for the tax year Apr15 - Apr 16, you would pay the other half of thus tax bill in July 16, although when you submit your 15 - 16 tax return the amount you owe would probably change.

It's not very likely that a business that only started in January would have to pay 1.5 times the tax for 2014-15 in January 2016, as most won't have a high enough tax liability.

That provision is much more likely to kick in in January 2017 based on the 2016 tax return, where the taxpayer will pay a full year's tax in one go AND the 50% on account for the following year

 

[Jordan2593]

It's not very likely that a business that only started in January would have to pay 1.5 times the tax for 2014-15 in January 2016, as most won't have a high enough tax liability.

That provision is much more likely to kick in in January 2017 based on the 2016 tax return, where the taxpayer will pay a full year's tax in one go AND the 50% on account for the following year

What is the tax liability? Is there a threshold?

 

[Jeff FV]

^^^ Good point from David ^^^

But the most important thing for the OP to take away is that they need to do their tax return by Jan 16, and will have to pay in Jan 16, but they can do their first tax return anytime now and find out how much they will have to pay in Jan 16.

 

[UK Contractor Accountant]

What is the tax liability? Is there a threshold?

Yes it's a £1K

Generally if your self assessment tax liability for the year is less than £1K you will not need to make payments on account for the following tax year.

 

[David Griffiths]

It's £1,000 provided that's more than 20% of the ttotal tax for the year. A taxpayer starting self employment in January would normally have 9 months of PAYE, and the 20% rule makes it less likely that a payment on account will be due