Discussion
i havnt worked from november 03 till nov 04,previous to that i was self employed and allways paid my tax on time,accountant sorted/presented all that trash,ive paid the last 2 bills as they are a year in arrears?,just got a bill for 03/04 and 04/05,my accountant told them i was taking a year off so why should i be liable for tax?any ideas?
I presume they have sent you the latest "Statement of Account" and it sounds like they haven't taken the fact that you've ceased Self Employment on board.
The Statement of Account issued in December tells you what you have to pay on 31 January 2005. This amount is usually made up of the balance you need to pay to clear your 2003/04 Self Assessment tax liability plus the first Payment on Account of the 2004/05 tax liability. If you ceased Self Employment in the year ended 5 April 2004 (which seems to be the case) then you probably DO have a balance to pay to clear the actual 2003/04 liability but there is a good chance that you do not have to make any Payments on Account for 2004/05.
Your accountant should have done the following:
i) entered a cessation date on the Self Employment pages of the 2003/04 Self assessment tax return.
ii) applied to have the two 2004/05 Payments on Account reduced to Nil. He/she could have done this by filling in the appropriate section of the Self Assessment tax return and/or completing and submitting a separate Inland Revenue form SA303. I usually do both.
Do you have a copy of your completed and submitted 2003/04 tax return to hand to se what was actually done?
The Statement of Account issued in December tells you what you have to pay on 31 January 2005. This amount is usually made up of the balance you need to pay to clear your 2003/04 Self Assessment tax liability plus the first Payment on Account of the 2004/05 tax liability. If you ceased Self Employment in the year ended 5 April 2004 (which seems to be the case) then you probably DO have a balance to pay to clear the actual 2003/04 liability but there is a good chance that you do not have to make any Payments on Account for 2004/05.
Your accountant should have done the following:
i) entered a cessation date on the Self Employment pages of the 2003/04 Self assessment tax return.
ii) applied to have the two 2004/05 Payments on Account reduced to Nil. He/she could have done this by filling in the appropriate section of the Self Assessment tax return and/or completing and submitting a separate Inland Revenue form SA303. I usually do both.
Do you have a copy of your completed and submitted 2003/04 tax return to hand to se what was actually done?
ta for the reply,i cant find the papers for what i paid last time,my accountant was advised when i ceased trading and she came round to my house to get me to sign them,ill have words with the girl in accounts tommorow,i didnt want to go in there without knowing where i stand.laters John.
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