Self employed tax question.
Discussion
Thanks.
You are currently in the middle of your business year ended 5 April 2011. This will form the basis for the entries on your 2010/11 Self Assessment tax return.
The tax arising from the details showing on your 2010/11 tax return will be payable by 31 January 2012.
If you pay someone £500 NOW, it will reduce your tax bill payable on 31 January 2012 by £200 and your Class 4 NI by £40, an overall saving of £240.
This will also have an impact on your two 2011/12 payments on Accounty (if you are required to pay these). If you are, these will reduce by £120 each.
This means that potentially, by paying £500 now, you reduce the tax amount payable on 31 January 2012 by £360.
You are currently in the middle of your business year ended 5 April 2011. This will form the basis for the entries on your 2010/11 Self Assessment tax return.
The tax arising from the details showing on your 2010/11 tax return will be payable by 31 January 2012.
If you pay someone £500 NOW, it will reduce your tax bill payable on 31 January 2012 by £200 and your Class 4 NI by £40, an overall saving of £240.
This will also have an impact on your two 2011/12 payments on Accounty (if you are required to pay these). If you are, these will reduce by £120 each.
This means that potentially, by paying £500 now, you reduce the tax amount payable on 31 January 2012 by £360.
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