You have until 1st April 2021 to arrange a payment plan to spread your self assessment tax liability for 2019/20 To be eligible to set up an online payment plan you need to: have filed your 2019/20 2020 tax return owe £30,000 or less have no other tax debts have no other HMRC payment plans set up This can all be completed on line here , you will need your personal tax account or government gateway , if you don’t have
The best way to show how this works is with an example, HMRC require 50% on account in each January and July based on the tax paid for the year before. If the tax is below £1000 then there is no on account. If 5 April 2020 is your first year then you will not have made payments in January and July 2020 and so payment on 31 January 2021 in this example based on taxable profits of £25,000 will
When you are self employed there are three parts to your “tax” bill. It is important to understand that HMRC deal with the Income Tax and Class 4 National Insurance but Class 2 national Insurance is dealt with by the national insurance office, the weekly payment is the contribution towards a year for your state pension HMRC are simply advised by the national insurance office if you are self employed and when you started, that way HMRC know how much
Expenses You Can Claim Work Clothes Clothes for work are a very grey area but here we give you some very useful tips. HMRC argue that of the clothes that can be worn day to day have a “duality of purpose” in technical speak, what this means is they have a personal and private use even if you don’t wear them for private purposes HMRC argue the clothes are not “exclusively” for the business and therefore not a business expense.
Claiming for use of home as a business expense You can claim for using your home for work purposes as an expense in your accounts, how you do it, well there are two main options If you only use it occasionally for doing admin and a bit of marketing then one best options is to claim on the same basis as if you were an employee working from home occasionally. HMRC allow a fixed amount depending on the hours you