Paying self assessment tax via ones tax code

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    Paying self assessment tax via ones tax code

    I have a public sector job which is taxed at source. I also have 2 rental properties. I have done a huge renovation on one of them costing in excess of £30000 and cleared out my savings account. This was mostly spent in 2020-2021. I have to do my 2019-2020 tax returns and basically there’s no money in the bank to pay the tax. The obvious option is to pay via tax code ( I guess) but I’m worried HMRC could make a mistake and over collect. Anyone have experience of paying rental tax via tax code, does it usually work out ok?

    #2
    These are the rules that apply to paying tax through PAYE. That's how Marsie pays his tax, there's never been a problem.

    https://www.gov.uk/pay-self-assessme...-your-tax-code

    Comment


      #3
      I'm not sure HMRC will be that sympathetic.
      For most self assessed tax, HMRC want payment on account in advance, so you'd not only pay your 2019/20 tax, they'll want 2020/21's tax on account as well (which is simply adjusted by your actual tax return for the tax year.

      HMRC shouldn't make a mistake with your tax code - but, if they do, you can ask for it to be corrected.

      And you have a day to sort it out.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Op do you not have an interest free credit card you can bung it on?

        Comment


          #5
          Jon66 I’m not a big credit card person and the one I have would certainly charge interest.
          I m hoping that for 2020-2021 I’ll pay a big fat zero in tax via my returns seeing as my property outgoings far exceeded my income. I certainly don’t intend to add tax on top prospectively. Speaking of which, MRC is always happy to take monies a year in advance, but do they ever pay back when what they took was an over estimate of the income ?

          Comment


            #6
            jpkeates - whoa!!! I thought it was going to be 31 St January as per previous years. Flipping heck I’m glad I posted here. There’s tomorrow’s entertainment sorted.

            Comment


              #7
              jpkeates that’s paper returns. Online is 31st January. You nearly gave me a vago-vasal.

              Comment


                #8
                Originally posted by Lots on View Post
                jpkeates that’s paper returns. Online is 31st January. You nearly gave me a vago-vasal.
                Apologies, not my intention!

                And online is December 30th, not January 31st.

                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  HMRCs website states Jan 31st https://www.gov.uk/self-assessment-t...urns/deadlines
                  I’ve got no intention of leaving it that long though.

                  Comment


                    #10
                    For the first year ever, I did mine in June . . . (smug smile) 🤣

                    Re the credit card, if your credit rating is excellent you can apply and be accepted online by a lot of zero per cent providers. I only know this because Virgin closed my account as it was never used, but I like one for emergencies as I travel a lot, so applied online and they were very eager to give me one.

                    Comment


                      #11
                      Originally posted by Lots on View Post
                      HMRCs website states Jan 31st https://www.gov.uk/self-assessment-t...urns/deadlines
                      I’ve got no intention of leaving it that long though.
                      That's the deadline for any self assessment tax return.
                      Have a look at Mrs Mug's link for PAYE specific information.
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                        #12
                        jpkeates Thanks , and also Mrs Mug for the link. 30th of December it is, as long as they don’t want more than £3000. As it looks like we’re heading for lockdown I have plenty of spare time to do it!

                        Comment


                          #13
                          I'm convinced the reason that lockdown is so mentally demoralising is, at least in part, because everyone has to deal with the fact that "I don't have time" stops being a viable excuse - even to ourselves.
                          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                          Comment


                            #14
                            Originally posted by jpkeates View Post
                            I'm convinced the reason that lockdown is so mentally demoralising is, at least in part, because everyone has to deal with the fact that "I don't have time" stops being a viable excuse - even to ourselves.
                            There is another way of looking at it. A month where I shan't spend anything beyond food shopping, time to get all those niggly little jobs done that I hadn't got around to, binge watch the movies and series I've wanted to watch, and money at the end for a holiday. Surely it's a win win 😀 (providing my new tenant can move in).

                            Comment


                              #15
                              I kind of agree Jon66, lockdown has worked to my advantage in many ways. I work from home, have saved on 2 hours of commuting a day which has enabled me to front run a refurbishment, do a lot of reading and get to grips with all the legalities of setting up a new tenancy etc. So far touch wood it’s mostly been positives. Now I just need to see some rent money!

                              Comment

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