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Sam, Accountant
Category: Tax
Satisfied Customers: 14165
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

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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
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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