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AIBU?

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Original poster

To ask if you have a self assessment tax bill of this, whether you must have earned a lot?

36 replies

Gennr · 04/12/2024 14:47

Self assessment resulting in 70k worth of tax to pay by 31 jan 2025. This is just for the last tax year and nothing carried over etc. Surely this means actual earnings/income must be pretty high? I’m not good with this sort of thing.

OP posts:
MereDintofPandiculation · 04/12/2024 15:06

SocksAndTheCity · 04/12/2024 14:59

Then why do you want to know? If you're trying to establish whether this person has a lot of money, their tax liability isn't going to tell you that.

Why would it not give an indication, apart from the obvious that this is last year's income and they may now be out of work?

MereDintofPandiculation · 04/12/2024 15:05

Gennr · 04/12/2024 14:53

@MereDintofPandiculation but even if from savings interest, is still must mean actual income of over 200k? Or am I wrong here?

Show quote history

Yes, split between earned income and income from interest and dividends.
Unless there's CGT in the mix.

Rosscameasdoody · 04/12/2024 15:05

Anyone else’s curiosity piqued ? Why does OP want to know if it’s not her tax bill. And how does she know what the tax amount is ?

Original poster
Gennr · 04/12/2024 15:00

@SocksAndTheCity well surely it gives an insight if that’s a tax bill for one year.

OP posts:
SocksAndTheCity · 04/12/2024 14:59

Then why do you want to know? If you're trying to establish whether this person has a lot of money, their tax liability isn't going to tell you that.

Original poster
Gennr · 04/12/2024 14:55

SocksAndTheCity · 04/12/2024 14:54

If this is your tax bill, how can you know the calculation without knowing what it's based on? If it isn't your tax bill, why are you asking?

Income tax is based on profit, so if somebody's record keeping is poor and they haven't recorded their deductible expenses properly it doesn't necessarily mean they had a lot left over, regardless of what their turnover was. Earning a squillion quid isn't great if it cost you 1.2 squillion quid to do so and you don't have any way to prove it.

@SocksAndTheCity its not mine.

OP posts:
Original poster
Gennr · 04/12/2024 14:54

@OpalMaker thank you. So you’d be in receipt of circa 200k then have to pay 70k tax? Ie left with around 130k

OP posts:
SocksAndTheCity · 04/12/2024 14:54

If this is your tax bill, how can you know the calculation without knowing what it's based on? If it isn't your tax bill, why are you asking?

Income tax is based on profit, so if somebody's record keeping is poor and they haven't recorded their deductible expenses properly it doesn't necessarily mean they had a lot left over, regardless of what their turnover was. Earning a squillion quid isn't great if it cost you 1.2 squillion quid to do so and you don't have any way to prove it.

Original poster
Gennr · 04/12/2024 14:53

MereDintofPandiculation · 04/12/2024 14:52

If it’s all from income, then income will be about 3 times this.

But some may come from interest on savings or dividends. Or even Capital Gains tax if something valuable has been sold.

@MereDintofPandiculation but even if from savings interest, is still must mean actual income of over 200k? Or am I wrong here?

OP posts:
OpalMaker · 04/12/2024 14:53

Yes, just asked Chat GPT - with several assumptions about NI, tax free allowances, etc - approx £190-200k to have a £70k tax liability.

MereDintofPandiculation · 04/12/2024 14:52

If it’s all from income, then income will be about 3 times this.

But some may come from interest on savings or dividends. Or even Capital Gains tax if something valuable has been sold.