- Original Poster
- #1
A relative who is a GP has asked me for some help - he used to work in a partnership once and has an accountant from that - I have said that I will help him get his affairs in order but then he should really go and see his accountant
His records are quite a mess tbh
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In regards to his 2009/10 Tax return
- He worked for 6 months as an employee (Salaried GP) - from his last payslip he seems to have been overtaxed (and he has a letter from HMRC saying his tax code has been set at 647L and any overpayments will be refunded or he will pay less tax in future) He says he doesn't remember this happening - but he doesn't have any of his other payslips so I can only see the totals.
- He then left this employment and was out of work for a few months caring for his wife - he received carers allowance during this period which is taxable
- Then in March he worked a few sessions as a locum GP and was paid gross
1) About his PAYE - would it be best to contact the employer and see if they can provide replacement payslips and whether they corrected any overpaid tax or would HMRC be able to provide this information?
2) When he used to be a partner - he sent his accountant a list of expenses which included 'medical books' - he claims that he read somewhere that he can claim some allowances for the cost of medical books when an employee aswell - I don't see any mention of this anywhere and don't believe it is allowed
3) About the self-employment it comes to about £2k - so it is below the lower limit for NIC cont's
I assume his simplified tax comp will be:
Employment earnings less allowable deductions (professional fees)
Plus Self-emp earnings less allowable deductions
Plus Gross Interest earned on bank account
Plus carers allowance payments
Less Personal allowance
Work out tax due on above
Less - Tax already paid via PAYE
Less - Tax paid at source on bank interest
Giving Tax due
Is this correct?
4) In regards to payments on account as he is now self-employed I have read that POA are not required if - payments in the last year via SA are less than:
- £1000
or
- 20% of total IT and class 4 liability
does this refer only to the amount paid in regards to self-employment? (though as he has overpaid on his employment and the CA/S-E is low I expect he will get a rebate if he will get his documents together!!)
----
For tax year 2010/11
He has been working as a self-employed locum GP during the year
He hasn't however registered as self-employed - the HMRC website mentions a penalty if you don't do this immediately - how much is this likely to be?
Therefore he also hasn't registered for paying his class 2 and 4 NIC's - so I expect he will get a penalty here too
His net profit for class 2 purposes will be higher than the lower limit - does he need to have financial accounts made up still?
I would appreciate any advice you can give or recommendations on HMRC helpsheets to view - haven't really come across someone working both as an employee and self-employed before - and the page on POA in my tax study manual is only 1 page long!
His records are quite a mess tbh
----
In regards to his 2009/10 Tax return
- He worked for 6 months as an employee (Salaried GP) - from his last payslip he seems to have been overtaxed (and he has a letter from HMRC saying his tax code has been set at 647L and any overpayments will be refunded or he will pay less tax in future) He says he doesn't remember this happening - but he doesn't have any of his other payslips so I can only see the totals.
- He then left this employment and was out of work for a few months caring for his wife - he received carers allowance during this period which is taxable
- Then in March he worked a few sessions as a locum GP and was paid gross
1) About his PAYE - would it be best to contact the employer and see if they can provide replacement payslips and whether they corrected any overpaid tax or would HMRC be able to provide this information?
2) When he used to be a partner - he sent his accountant a list of expenses which included 'medical books' - he claims that he read somewhere that he can claim some allowances for the cost of medical books when an employee aswell - I don't see any mention of this anywhere and don't believe it is allowed
3) About the self-employment it comes to about £2k - so it is below the lower limit for NIC cont's
I assume his simplified tax comp will be:
Employment earnings less allowable deductions (professional fees)
Plus Self-emp earnings less allowable deductions
Plus Gross Interest earned on bank account
Plus carers allowance payments
Less Personal allowance
Work out tax due on above
Less - Tax already paid via PAYE
Less - Tax paid at source on bank interest
Giving Tax due
Is this correct?
4) In regards to payments on account as he is now self-employed I have read that POA are not required if - payments in the last year via SA are less than:
- £1000
or
- 20% of total IT and class 4 liability
does this refer only to the amount paid in regards to self-employment? (though as he has overpaid on his employment and the CA/S-E is low I expect he will get a rebate if he will get his documents together!!)
----
For tax year 2010/11
He has been working as a self-employed locum GP during the year
He hasn't however registered as self-employed - the HMRC website mentions a penalty if you don't do this immediately - how much is this likely to be?
Therefore he also hasn't registered for paying his class 2 and 4 NIC's - so I expect he will get a penalty here too
His net profit for class 2 purposes will be higher than the lower limit - does he need to have financial accounts made up still?
I would appreciate any advice you can give or recommendations on HMRC helpsheets to view - haven't really come across someone working both as an employee and self-employed before - and the page on POA in my tax study manual is only 1 page long!
