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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14000
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Im self employed and my tax bill last year was about £850.00

Resolved Question:

im self employed and my tax bill last year was about £850.00 only this year when I sent my accounts to my accountant he said my tax bill would be £ 7200.00 a unbeleavable difference my earnings was about £ 43000.00 last year & this year due 31/march about £74.000 I am just so upsett and cannot sleep at night its one thing paying about £850 and but then having to come up with an impossible £ 7200.00 at once when I have no work in winter January & febuary. I know I should have put money aside but that said I know my earnings have risen just this year but I expected about double last year do you think hmrc will let me pay say over 5 months or so worried and have not slept at all last week or so thanks john
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi John Thanks for your question HMRC will certainly be willing to let you pay over a few months and the £7200 may be the tax and Class 4 National Insurance bill of £4800 plus a first payment of £2400 on account - which totals the £7200 (which gets you into the self assessment payments on account system whereas the previous tax bill being less than £1000 would have seen you NOT needing to make payments on account)I would have expected your accountant to have had a conversation with you last year - to prepare you for the obvious increased earning position that had begun and subsequent increase of monies owed. But get in touch with HMRC before 31/01/2016 - and make a payment plan offer. (or ask your accountant to represent you in this) Also consider whether there is a decrease in earnings set for the period to 31 March 2016 - and whether payment on account can be reduced. Let me know if I can assist further Thanks Sam
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