Payment on Account- Income Tax

Tiger

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

burg

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.

Tiger

Thank you for your help..much appreciated
K
:thumbup1: