1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Education Self-Assessment am I too early or on time!?

Discussion in 'General' started by DeadP1xels, 24 Jan 2021.

  1. DeadP1xels

    DeadP1xels Social distancing since 92

    Joined:
    30 Nov 2009
    Posts:
    5,805
    Likes Received:
    688
    I’ve going to put my hands up and plead ignorance here, I registered as a sole trader in August 2020 reselling on eBay for profit. I got quickbooks, I kept all my invoices and receipts and made sure I was really on the ball straight out the gate made sure I’d done my research and wasn’t going to fall foul of anything.

    I’ve registered for self assessment, I have my UTR and activation and I was all set to go, I’ve done my taxes and expenses and have the cash and then some... I’m almost there.

    But would you be filing online for the 2019/2020 tax year in which I’d have earnt sweet f all? I wasn’t doing any business activity until August 2020

    Am I actually 12 months ahead and should be filing in January 2022?

    in my defence this is my first time filing a tax return as I’ve always been employed and never needed to deal with it...
     
  2. enbydee

    enbydee Minimodder

    Joined:
    10 Jul 2014
    Posts:
    453
    Likes Received:
    172
    It sounds like yes you are a year early, having registered HMRC might be expecting you to file for 19/20 by 31 January 2021 so if you don't file you might get letters and fined. Others may have more experience but I'd give them a ring to see if they can confirm whether the year is still open, record that they have details of all your income (p60) and ask whether they can close the year for you. Or file a return for 19/20 with your p60 and any other income if it's not too complicated.
     
  3. DeadP1xels

    DeadP1xels Social distancing since 92

    Joined:
    30 Nov 2009
    Posts:
    5,805
    Likes Received:
    688
    Thanks, that answered my follow on question also!

    I shall give them a ring tomorrow to check everything is in order and look forward to the Jan 2022 deadline

    I should expect to pay my 2020/2021 bill on that date along with a 50% payment on account for the 2021/2022 tax year and a further 50% on July 31st 2022... right?
     
  4. enbydee

    enbydee Minimodder

    Joined:
    10 Jul 2014
    Posts:
    453
    Likes Received:
    172
    Ha, yes I was going to mention that, often forgotten and can feel quite painful in cashflow terms for new filers, start earmarking cash a little and often and it won't be as bad after that initial hit. The exception would be if your 2020/21 bill was less than £1,000 in which case the payment on account isn't due. Don't forget to include Class 4 NIC in your calculations too, it's not just income tax.

    If you expect your income to reduce in the future you can elect to reduce payments on account, but HMRC would charge interest on underpayments if it transpires your payments on account should have been higher (e.g. you come to file your return and your reduced payments didn't meet your liability, HMRC will say you should have paid half your liability at each payment on account [up to 50% of the prior year's liability] and charge interest for the time it went unpaid).
     
  5. DeadP1xels

    DeadP1xels Social distancing since 92

    Joined:
    30 Nov 2009
    Posts:
    5,805
    Likes Received:
    688
    Awesome, thanks for the help @enbydee you have saved me much confusion , I shall ring HMRC tomorrow and explain my screw up in registering this year and put this cash aside and add to it for when I’m supposed to!
     
  6. adidan

    adidan Guesswork is still work

    Joined:
    25 Mar 2009
    Posts:
    16,913
    Likes Received:
    3,236
    Good luck, even more luck if you try the online chat - it's a busy time of year let alone covid.

    I have literally got a quicker response writing to them in the past.

    Good luck though :thumb:

    Edit: once you do get hold of them though i've found them to be extremely nice and helpful.
     
  7. DeadP1xels

    DeadP1xels Social distancing since 92

    Joined:
    30 Nov 2009
    Posts:
    5,805
    Likes Received:
    688
    Yeah I thought as much, I’m working from home tomorrow so maybe if I continue ringing I should get through in 12 hours... right?

    if not it’s a letter on horseback
     
  8. adidan

    adidan Guesswork is still work

    Joined:
    25 Mar 2009
    Posts:
    16,913
    Likes Received:
    3,236
    You may do, there's no rhyme nor reason that I can see (other than deadline times).

    My OH was sat on the online chat over two days wanting to get her owed cash back, it toyed with her but never put her through.

    The phone may be a better choice, no idea what their setup is during lockdown.

    But yeah, you may get lucky :thumb:
     
  9. DeadP1xels

    DeadP1xels Social distancing since 92

    Joined:
    30 Nov 2009
    Posts:
    5,805
    Likes Received:
    688
    Well that was a weird experience, first few attempts got nowhere just an automated message saying it was too busy and call back

    Second attempt I got put in the queue spoke to what sounded like a very stressed out lady, repeated my NI number a few times, explained my issue and she basically said someone would call me back in a few days and hung up before I could protest...

    Third attempt got through again, spoke to a very firmly spoken lady, said because I had registered my self employment as August of last year that I would have a tax return sent out after the April tax year as expected but me registering wouldn't mean they would expect anything from me in January
     
    adidan and Arboreal like this.
  10. enbydee

    enbydee Minimodder

    Joined:
    10 Jul 2014
    Posts:
    453
    Likes Received:
    172
    Ah sorry yeah, I get to go through the agents line so it's usually picked up pretty quick. Glad you got it sorted and I was perhaps being overly cautious but it's nice to have confirmation. I'd write a note to myself (including date) and keep it in a file somewhere for the next three years; just so you have a record of why you didn't file in case they ever do ask for a return for 19/20.
     
  11. adidan

    adidan Guesswork is still work

    Joined:
    25 Mar 2009
    Posts:
    16,913
    Likes Received:
    3,236
    Think they sound snowed under.

    If for some reason it doesn't get logged don't worry, I once got a penalty for not submitting a tax return but it was in a year I didn't need to. A quick letter got that sorted.

    I haven't actually found a way of doing that online which would be easier.
     
  12. Spraduke

    Spraduke Lurker

    Joined:
    23 Sep 2009
    Posts:
    637
    Likes Received:
    132
    I was having to do tax returns to 'repay' child benefit. Well I decided the benefit wasn't worth the faff so cancelled it before last tax year. This year after completing mine I got a message saying please don't bother next year - when I was sure I would have to phone and pester to get of the list (which I probably will do anyway to be on the safe side).
     
  13. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

    Joined:
    4 Dec 2007
    Posts:
    14,594
    Likes Received:
    3,414
    I had to repay Child Benefit this year, too, 'cos I popped over the earnings threshold. Still have to claim it, though, 'cos it's the Child Benefit claim that's covering what would otherwise be a gap in my wife's NI contributions - she's the one claiming it, but the earnings limit is based on joint earnings.
     
  14. MadGinga

    MadGinga oooh whats this do?

    Joined:
    19 Mar 2009
    Posts:
    2,309
    Likes Received:
    272
    My understanding is that the earnings limit (for the High Income Child Benefit Charge) is based on one of you, not the combined. If one of you pops your head above the parapet of 50k, boom headshot, you both stay nice and quite at 49k? not a shot...
     
  15. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

    Joined:
    4 Dec 2007
    Posts:
    14,594
    Likes Received:
    3,414
    Yeah, sounds right - but as she's a stay-at-home parent, our combined income is exactly equal to my income alone...
     
  16. RedFlames

    RedFlames ...is not a Belgian football team

    Joined:
    23 Apr 2009
    Posts:
    13,740
    Likes Received:
    2,165
    Possibly worth plonking this here, given the topic -

     
    adidan likes this.
  17. Pete J

    Pete J Employed scum

    Joined:
    28 Sep 2009
    Posts:
    6,305
    Likes Received:
    876
    @DeadP1xels I heard on the radio as I was driving home that they wouldn't penalise people for missing the deadline this year (as @RedFlames has posted), so don't sweat!
     
  18. Spraduke

    Spraduke Lurker

    Joined:
    23 Sep 2009
    Posts:
    637
    Likes Received:
    132
    Worth noting that its a sliding scale, 10% repayment per £1k over £50k so until your over £60k (or near enough) its still beneficial - just have to fill in the tax return form each year.
     
  19. MadGinga

    MadGinga oooh whats this do?

    Joined:
    19 Mar 2009
    Posts:
    2,309
    Likes Received:
    272
    Indeed. Hence why the wife is claiming it and I get the joy of self assessment - although HMRC have given me a deadline of 1st May :p
     

Share This Page