Hi guys, came back after some great information on my last questions. I have been self employed sole trader since September and I'm now finishing off my first year. I understand I will need to submit my self assessment and then my bill will be calculated. I have been keep money to cover the bill however I'm wondering when and how this is paid. I read that I will make payments on account in January and July.
Do I need to pay the current year 2011-12 tax and a payment on account by Jan 31st 13 or am I simply paying this years bill on its own by that date.
Also when calculating my expenses do I need receipts for everything or is there a cut off point for example I don't have receipts for some car parks or road tolls I have paid etc.
Thanks
If you became self employed in September 2011, then your first tax return will be for 2011/12. You're right that by 31 January 2013, you'll need to pay the income tax and Class 4 national insurance liability for 2011/12, as well as a payment on account for 2012/13. A second payment on account for 2012/13 will be due on 31 July 2013.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
