Self-assessment tax. £9k!!

[FlyingGreenFrog]

Hi, can anyone give me any advice (reassurance!) about self-assessment tax?

I’ve just submitted my self-assessment and it’s given me a bill of £9k! Plus an extra payment of £3.5k in June.

But I only earned £16k self-employed. I also briefly worked for a company earning about £3.5k. So a £9 tax bill on a salary of les than £20k seems insane?? It must be wrong mustn’t it?

I’m genuinely terrified here. Hadn’t expected it to be more than a couple of grand.

grateful for any help or insights!

That is completely wrong. I would call and speak to HMRC.

I had a similar problem today, the amount of tax was way higher than it should have been.
I had 2 jobs and If you do as well it's worth checking the number if right for employee and self employment. For example I had 1 employment and 1 self employment but I had put 2 jobs under employed. Does that make sense??

Op you need to claim the £1000 expenses - every little helps. Easier than itemising too.

Probablyvt it's still too much. If ur not earning that next year u can ask for this payment for the year ahead to be deducted t if u do end up earning it they'll charge u it + interest next year!

This is a bit scary. I have just registered with HMRC because I need to declare income from a side hustle. I started in July, but got first payment in October. I work full-time too ,and that's PAYE.

I only registered because some of my work is for a gov't body that demanded that I did it. I'm not claiming expenses because I already WFH and have equipment etc for my day job, and it's only a few hours a week on the side hustle.

I am counting all monies received as income, and I'm keeping back half of every payment for tax and as a safety net.

I don't want to pay an accountant - please tell me, it's fine, and I won't need to!

You have expenses, but in a small claim for heating, electric, internet, rental of equipment, pens, paper/notebooks etc

Back to OP, this is why I always use an accountant. People often don’t want to spend the money, but you claim it back the year after and they pay for themselves in savings. A self assessment account will only be a couple of hundred. Limited co. More obviously, but worth every penny.

It's fine, I do my own in very similar circumstances to you.

I get the figures from my self-employed income and my bank account interest (and the odd dividend) and I don't claim expenses because like you I have everything I need to do the work.

It takes me less than an hour to do my return and once it's been reconciled and finalised, I pay the bill so it's done and I don't have to think about it again (I log in a couple of times over the year to make sure they've not done anything weird). I could probably also pay it via PAYE, they'd adjust my tax code, so that might be an option for you as well.

Thank you for that reassurance @enchantedsquirrelwood.

My plan is to do the same as you.

The total given is almost twice what you think it should be. Chances are you have inputted data twice.