What does this mean (self assessment)?

[anonymous-user]

[redacted]

[Condi]

You can pay it online at HMRC website. It's not the easiest link to find, but there is a page whereby you can pay by card or bank transfer.

[ARHarh]

Just to add £373 is less than 40% of £1k. So if it was nearly £1k above normal earnings and you pay 40% tax it will be correct.

[Countdown]

anonymous said:

[redacted]

On the website you should be able to look at your Form SA302 which shows how the tax has been calculated.

in terms of payment could you not ask them to adjust your tax code?

[okgo]

Countdown said:

On the website you should be able to look at your Form SA302 which shows how the tax has been calculated.

in terms of payment could you not ask them to adjust your tax code?

Yes, you can if its under a certain amount and you submit by the end of December. The amount from memory is in the thousands, so should be fine to edit your code.

[gotoPzero]

If you owe more than 1k in tax you have to pay "on account" twice a year. Once is 50% of last years tax up front as an advance and the balance after your SA302.

As last year they owed you it was nil to pay on account (normally in June each year.)

So its just saying you had none to pay on account and pay 300 as normal by 31st Jan.

Then there will be none to be paid on account again in June as your tax for 22 was sub 1k.

[Countdown]

anonymous said:

[redacted]

You may be getting that mixed up with the fact that if your total profits are <£1k you don't have to bother informing HMRC. If you tell HMRC then it's taxable.

[Eric Mc]

You were told wrong. If you run a self employed business and it makes a profit of £900, you pay tax on the £900.
However, you are allowed to "non-declare" profits of under £1,000.

If you are making actual trading losses, you might want to declare those losses so you can obtain "loss relief".

[Panamax]

anonymous said:

[redacted]

How can a chauffeur not make a profit? Are you simply buying a nice car by posing as a self-employed chauffeur? HMRC will see through it in no time if that's the case.

Broadly speaking a "business" has to be trying to make a profit whether or not it succeeds. A hobby can't be relabelled as a business with a view to deducting expenses against tax and never making any money.

[Panamax]

anonymous said:

[redacted]

OK, but how do you not make a profit?

You presumably have significant "income" from the customers. What/where are the "expenses"? And if they genuinely exceed the income why are you doing this loss-making job?

[Monkeylegend]

It should be declared income then?

Or is it all cash in hand.

[Monkeylegend]

anonymous said:

[redacted]

As an aside I used to run my own chauffeur business and was often asked to drive customers cars, which I never did.

However the one I regret was not driving a nearly new Ferrari 599 to Heathrow for a very good customer on Jan 1st one year, a trip of 110 miles. He was coming back from holiday into LHR and wanted the Ferrari to drive onto somewhere else.

I chickened out because of the icy roads forecast and having to find my own way back home again.

[Panamax]

anonymous said:

[redacted]

If you are an employee of that company I don't see how you'd get a rebate of tax that hasn't been paid. Also, as an employee, you would have very little opportunity to offset expenses.

If you are engaged as an independent contractor by that company then that company is your customer, not the passenger. It wouldn't be unusual if IR35 still required them to deduct tax, but so be it. As a self-employed contractor you would be able to claim various expenses against income, but if it's a "business" it needs to be trying to make "profit". If the jobs are being handed out by a separate company it's not obvious what your own expenses would be. (Driver's uniform? Essential mobile phone?)

It sounds as though any tax rebate you're getting may well be accounted for by other sources of income, not this chauffeur role.