I have a query from a client and wondered what your thoughts are on the matter..
She is self employed and has told me that she will be moving to employment only beginning of may 2010, therefore only 1 month worked self employed in the 10/11 taxyear.
She has a tax liability for over £1600 for the 09/10 tax year, therefore has a payment on account to pay also by 31st jan 2011.
It doesn't seem worth the client paying the poa, would you suggest perhaps putting just one months worth of tax, as an estimation through, not sure what is best to suggest here....
Is it possible to zero down the poa, and also if this was done what would the interest rate be on the tax that was owed.
Hope this makes sense, she is suggesting that I zero down her poa, but wants to know the implcations with interest charges etc.
Thank you in advance and very much appreciated as usual!
Make a claim to reduce poa via sa303, but do not zero it. If her tax bill is £1600 then take a twelfth of this, about £133,. Bearing in mind she will be using her PA for her employed income, all her profit for this month will be taxable (you could actually work this out exactly). On these figures theer will be no class 4 nic either.
I don't think it can be done online but I ahve found the correct form, can I just check that the tax return needs to be filed as it is showing the payments on account at about £800 each, then after the return is sent then you send the letter separately is this correct?
What happens then does the reduction of payments on accounts get sent to your client, does it show on line?????
do I have to file online as normal with the poa shown higher than what it should be then send the form to change the poa amount later, after sending the tax return online?????
wouldn't want to do this incorrectly and the client is like what the hell have you done! worst case scenario!, never had this experience before, newbie to changing poa amounts!
sorry wasn't sure if my posts above were making sense! long day!
