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Paying self assessment through PAYE

jiltjilt Font Of All KnowledgeRegistered Posts: 2,903
Have I got this right or is my brain well and truly scrambled this month?

If so-one owes £1200 self assessment tax and NI and opts to pay it through PAYE will their tax allowance be decreased by £6000?

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Errr.... yes. I think so.

    They have to have submitted tax return by 30th December for a coding to go through - it's too late now for 2009-10 tax returns.

    If you're asking because you want to know about prior codings, I always phone HMRC and ask what previous tax has been put through this year's code so I can put the right number on the tax return.

    Tax codes bake my noodle!
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    Thanks Jenni.

    Oh damn forgot about the December cut off! Oh well good job I hadn't mentioned it to the client yet, phew!
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    No worries. :)
  • AK002AK002 Font Of All Knowledge Registered Posts: 2,492
    I think the liability has to be below £1000, as that's when POA's kick in?! (Someone else will no doubt confirm...)
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    No I'm pretty sure its £2k.
    If you get it coded, you don't have to pay poas, how nifty is that?
    If you ask to get it coded, then chabge your mind, pay the liability in jan and get your code back to normal before april, you get away with not paying PoAs, how nifty is that? Not sure its reliable but happened to my vclient by accident 2 years ago (genuine change of plan).
  • AK002AK002 Font Of All Knowledge Registered Posts: 2,492
    That's quite nifty ;)
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    Yeah can pay through PAYE if not more than £2000, and P on A not required if tax liabilty below £2000 now. Shame they didn't come to me last month.
  • jewels.pjewels.p Font Of All Knowledge Registered Posts: 1,774
    Did it used to be £1000 before POA's start? Cause that's what I thought it was
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    jewels.p wrote: »
    Did it used to be £1000 before POA's start? Cause that's what I thought it was

    It did Jewels yes
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    jilt wrote: »
    It did Jewels yes

    And £500 a few years before that.

    Didn't know it had gone up to £2k!
  • jewels.pjewels.p Font Of All Knowledge Registered Posts: 1,774
    I didn't know that either when did that happen?
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    It didn't.

    £1,000 is the payment on account threshold. (Unless you meet the 80% rule).
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    It didn't.

    £1,000 is the payment on account threshold. (Unless you meet the 80% rule).

    That might be why I missed it then....!!
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    This is very strange, why is it on a couple of returns with ftax it's not asking for a payment on account when the tax liability is between £1000 and £2000?! And on others it is, its a good job I haven't given the figure to pay to the client yet.

    Have you had that Jenni? Or have you stopped using ftax?

    OMG I apologise profusely, what a donkey! Sorry Jewels as Dean so rightly says it is still £1000 before POA kick in.

    Yes Dean I understand what you mean now, both the clients are also employed who weren't being asked for payments on account. I foolishly thought it had increased to £2000, although where I got that figure from god only knows, I'd just read that the POA rules had changed. How embarrasing :blush:
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Don't worry about it Jill, it happens to all of us in some way or another!! I told someone to raise an invoice in Jan at 17.5% not 20% because it was for December work (and then corrected myself) - d'oh!

    I've not had that issue with Ftax (and yes I'm still using it) - have you downloaded the latest version from the website?

    Remember if their income is from multiple sources and some is taxed at source PoAs may not kick in.
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    Monsoon wrote: »
    I've not had that issue with Ftax (and yes I'm still using it) - have you downloaded the latest version from the website?

    Remember if their income is from multiple sources and some is taxed at source PoAs may not kick in.

    Yeah I realised all this afterwards, there's nothing wrong with ftax, it's me lol

    Note to self.... order a new brain for you birthday!
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