Payment on Account- Income Tax
Tiger
Registered Posts: 63 Regular contributor ⭐
Hello all
Does anyone know how to calculated the payment on account for 09/10?
The situation I have is 07/08 profits did not give rise to a tax liability (below PA's). This year 08/09 the profits are higher and will give rise to a tax liability in excess of £500 per partner.
AM I correct in thinking that the POA has to be equal to the expected tax liability for yr 09/10 and split into two payments ie Jan & jul 2010.
Can some one confirm if thats correct please or advise otherwise....
Many Thanks
K
ps I'm a full member but not an MIP so don't worry
Does anyone know how to calculated the payment on account for 09/10?
The situation I have is 07/08 profits did not give rise to a tax liability (below PA's). This year 08/09 the profits are higher and will give rise to a tax liability in excess of £500 per partner.
AM I correct in thinking that the POA has to be equal to the expected tax liability for yr 09/10 and split into two payments ie Jan & jul 2010.
Can some one confirm if thats correct please or advise otherwise....
Many Thanks
K
ps I'm a full member but not an MIP so don't worry
0
Comments
-
Almost
Basically the POA would be half the tax liability for 08/09 from non direct sources (i.e. non PAYE).
However for 08/09 tax payments in January 2010 the POA amount has changed to £1000. So you do not need to make payments on account if tax from non direct sources is less than £1000.
E.G.
Tax for 08/09 (self employment)...£1000
1st POA for 09/10.......................£500
Total due by 31 Jan 2010............£1500
2nd POA @ 31 Jul 2010................£500
Balance for 09/10 due by 31 Jan 2011.Regards,
Burg0 -
Thank you for your help..much appreciated
K
:thumbup1:0
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