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if you owe £1000 in tax your bill will actually be £1500 as hmrc get you to pay 50% in advance for next year
It's not technically in advance, since your January 2019 payment on account is tax on work done since April 2018.
Also if your outstanding tax for self employment is as little as that and you have an employment too, you can choose to have it taken over the year with your PAYE tax by having your code adjusted.
gbj_tester-
Also if your outstanding tax for self employment is as little as that and you have an employment too, you can choose to have it taken over the year with your PAYE tax by having your code adjusted.
This is good to know, my actual earnings are just over that amount at the moment, let alone the tax owed.
Already aware that my allowance will be already spent on regular PAYE stuff.
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Of course it's a payment in advance, you are making it in advance of your tax calculation being made. The January payment is made on the assumption that you will earn the same amount as you did the previous year not actual earnings since April. You can also file and pay your tax on the 6th of April if you wanted to.
snottyotter
Gewürzt
Yeah that's right, a couple of things to be aware of (if you're new to self employed and might be unaware) is that the tax you pay depends on the tax you pay for paye and not treated separately i.e. the first 11500 of your self employed earnings is not tax free if you've already used the allowance in your paye job. Also if you owe £1000 in tax your bill will actually be £1500 as hmrc get you to pay 50% in advance for next year (half of the advance payment due on 31st Jan with the current tax bill and the other 50% in July) I had no clue about the payments in advance and the first return I did where I made a profit left me frantically trying to find an extra grand in a month. Sorry if I'm just telling you things you already know.