Tax Returns

I can't remember if trade union fees are tax deductible or not?

to log in you need a code sent to your designated phone number
then you can change your designated phone number !

I can't remember

Possibly because there isn't a single answer. Some part of some union subscriptions can be claimed as a deduction from income from employment. Start here and follow the links. It's usually handled via your employer, you tell them about your union membership and they adjust your PAYE code accordingly if permitted.

Ah yes the approved list. It's on there, all good.

And done!
Just realised I never claimed my overpayment from last year. Will try to remember to get both of them next week.

Done for another year.

1 hour in the queue to speak to an advisor ..... so far

Payments on account for freelancers who complete self assesment: I request not to make these every year. Usually they don't chase me. I never have the cash halfway through the year to pay any tax in advance.

This year, even though I'm self employed, I'm paying 20% tax at source due to a new scheme to stop construction workers avoiding tax. (CIS) So if it was hard to make payments on account before, now I definitely cant.

I've just paid my approx 6k tax bill for 21/22, in time for jan 31, but HMRC say I owe them £300 in interest for late payments on account.

What are my chances of getting this cancelled? I have no cash, am owed approx 4k by contractors, and I think they are cunts and its totally unjustified. Any advice very welcome.

What have they charged you interest on, the first payment that was due on the 31st of July?

No idea if they'll be able to cancel it but they should be able to spread the cost, or even just add it to your tax code so it comes out at source over the next 12 months with your CIS payments. Getting through to HMRC can be a struggle but I've generally found them pretty understanding and helpful if you're not taking the piss.

I assume it is interest on the last years payments on account that were reduced/deferred?

@William. - It's easier said than done, but I see it as once you stump up the initial payment on account, then you are basically just paying your owed tax every 6 months rather than every year. Doesn't work so well if your income is very inconsistent year to year or month to month.

I never have the cash halfway through the year to pay any tax in advance.

Your payments on account are tax due on earnings you have already received, so it's not "in advance" unless for some reason you have negligible revenue from April 6th to January 31st and then make it all up in the remaining nine weeks.

AFAIK, the only way legitimately to avoid payments on account is to demonstrate an annual tax liability of under £1k. If you asked them to reduce your payments on account (possibly to zero, but other options are available) based on an expectation of reduced profits compared with the previous year but then showed similar or higher profits in your return, they are not really being cunts when they imply (by way of interest on "missed" payments) that you should have made the payments on account.

£300 seems like a lot of interest for an annual liability of £6k, have they given you a penalty too or does that figure cover more than one year?

The actual interest owed is £200, but they have added something and I'm trying to work out what it is. I have paid them £6800, but only £6700 is showing as paid. I called them today and the guy couldn't see the discrepancy, it was incredibly frustrating.

I request to reduce my payments on account to zero every year, because yes my income is erratic. Sometimes I earn most of my income in 6 months, then live off it while I make art, which may or may not sell. Income varies between 20-40k. If I made these payments on account I would not be able to invest in potential projects, tools or workshop space. This is the first year they have refused my request, and I didn't realise, so here I am.

I've also had a spinal injury which cost about £3k for an operation, and chronic pain since then, so maybe they're not cunts but the whole thing feels unfair.

If I made these payments on account I would not be able to invest in potential projects, tools or workshop space

We could all do more useful things with the money, but I'm not sure why you expect an interest free loan from the rest of us to finance your projects

the whole thing feels unfair

Outside of the many unfairnesses included in the tax code for the benefit of the ruling class, why is it fair for the rest of us low income sole traders to make our payments on account but for you not to?

I'm as bad at budgeting for tax payments as the next man, but the fundamentals of Self Assessment have been with us for a quarter of a century, so it's my fault if there isn't money in the bank when the bills fall due and I have to borrow on the commercial market.

Paid tax, sore yin.

Then today my invoice from accountant comes in. Happy Friday guys.

but I'm not sure why you expect an interest free loan from the rest of us to finance your projects... why is it fair for the rest of us low income sole traders to make our payments on account but for you not to?

I have paid my tax on time, in full, every other year since I became self employed in 2011, usually on the day I complete my return in April. Anyone can request to reduce payments on account, and all requests are considered on their merits. Alot of small creative businesses would cease to exist if this were not possible. I also sometimes get Arts Council grants for projects, which are part taxpayer funded, so thanks for your generosity :)

You'll be pleased to hear my request to reduce payments on account to zero for 22/23 was agreed.

I have paid my tax on time, in full, every year

And yet you have an interest charge for late payment 🙂

Yeah. Want to buy a painting?

Tax question I’m utterly clueless:
My wife works for multiple NHS trusts and NGOs she has 1-2 days a week PAYE but the rest is on emergency tax rate.
What is the best approach to keeping on top of this from a tax as these can be short term contracts. I’m assuming the emergency rate is wrong. Will an accountant cost in, or this just a case of hours on the phone with HMRC?

"We could all do more useful things with the money, but I'm not sure why you expect an interest free loan from the rest of us to finance your projects”

I agree with this even though in the past i have not paid on account, people don’t seem to grasp the concept of keeping track of income and the long grace period you get being self employed to pay your tax, the on account payment is effectively the tax on the money you earned in the first half of the current tax year that ends in April.
There is also a mechanism to either be repaid or not pay it and you have plenty of time to see if you need to apply. seems perfectly fair to me and i’m not just on the outside looking in.

Sorry was that some esoteric response to my question, something entirely unrelated or a cry for help?

If a cry for help, get in the queue

Are you looking for sympathy and then trying to be smug with the grants funding.

Might have read it wrong but you sound like a clown if I haven’t

Best to call HMRC you might be able to agree a non emergency tax code. They tend to be good once you get through to them.

Cheers, my last direct interaction with HMRC was when I received two letters from them; one stated I owed them money the other that I had over paid and they owed me money.
2 days on the phone and they agreed they owed me money and wished me good luck in getting it back….so I’m reticent

was that some esoteric response to my question

It was a concurrence with my response to @William.

Cool, apologies all round I’m sure