Helping a friend with 20111-2012 accounts & SA return and feel I have enough info without having to approach last years accountants. Ok, I don't have a penny perfect TB but I do have a copy of the 2010-2011 accounts they produced. In terms of tax, I also have a schedule to tax return showing the following:-
Income from P60 = £26,608
PAYE = £5,607
Profit for tax purposes = £18,560 (After adjustments/ Capital allowances)
Tax due (Balancing payment 2010-2011) = £3,417.80
There was obviously self-employed income as well as a salary for which PAYE was applied......but how do you get to £3,417.80?? I can't get to this figure exactly and wonder if there is further information that I might be missing?? Can anyone out there get to this figure??
I am guessing that there was a payment on account from the previous year. If it was a balancing payment, could there have been an overpayment from the previous year that has reduced the amount that needed to be paid ?
Thanks for your input.........I only had the same limited info as you, but there is nothing else even though I do not have the actual computation - although there may have been a balance b/f. However, I was using the wrong NI rate for 2010-2011 in trying to arrive at their tax liability and after correcting this now end up with a difference of around £63.
As the self-employment started half way through the year.....might this be explained by class 2 contributions?? This would be (say) 26 weeks x £2.40 = £62.40.
Hi, the term 'balancing payment' strongly indicates it is purely a Self Assessment liability. Slightly annoying that you can't get it to the penny but whatever the reason for the discrepancy, but you could just accept it, simply because it is their year and their balance.
Just some ideas because you say we only have the same information.....................
I know you are only helping, why not go the whole hog and ask them? It's always a good idea for the client to say that he's doing his own return and they could be holding some relevant papers. He should have statements on account and P2 code notices to check Bill and my suggestions. These may be still available online if you obtain an HMRC passcode(s).
