2010 Tax Return and Class 4 NIC

anniem
anniem Experienced MentorPewsey, WiltshireRegistered Posts: 1,326
Hi

I've just been going through my friend's tax return.

Last year he made a loss, having purchased a van claimed back through AIA.

This year he has a tax liability, but I'm not sure when this will be due and payable. Can someone advise please? I calculate he owes £2,756.80 tax.

Also, I've calculated that he will owe Class 4 NIC, but having trawled through the forum I've think I've discovered that other NI paid is deductible. He's paid monthly standing orders totalling £105.10 in the year. I calculate he owes total Class 4 NIC of £1,163.52 for the year, but I'm not sure if I can reduce this figure by £105.10?

Can this be deducted from the Class 4 NIC liability, as there isn't a box on the Tax Return?

Thanks
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire

Comments

  • sloshed
    sloshed Well-Known Registered Posts: 100
    Hi

    If he made a loss last year check the losses were used up and not carried forward to this year.

    The tax and class 4 nic will be payable on 31 January. He will also need to make a payment on account, which 50% of the tax and class 4 liability.

    The £105.10 will relate to class 2 nic and is not deductable.
  • anniem
    anniem Experienced Mentor Pewsey, WiltshireRegistered Posts: 1,326
    On last years tax return we put for loss to be carried forward.

    I have offset last year's loss against this years profit, using the 'business losses brought forward from earlier years' box.

    Have I done the right thing?
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • sloshed
    sloshed Well-Known Registered Posts: 100
    Yes thats fine
  • anniem
    anniem Experienced Mentor Pewsey, WiltshireRegistered Posts: 1,326
    Thank you for your help sloshed!
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
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