Payment of Account
What on earth is it & do I have to pay it?
It's an advance payment toward your next tax bill.
HMRC base this advance payment amount on your earnings you submitted in that first Self Assessment tax return. We've mentioned this in a blog back in December 2020 so we thought we'd revisit this topic and continue to debunk the mystery of all things Self Assessment.
Don't forget, you can still get your personal allowances as well. The Standard Personal Allowance is £12,570 (the amount of income you do not have to pay tax on). Click here to see more on this.
The amount of income you don't have to pay tax on may differ, depending on your own circumstances.
What happens if you claim Marriage Allowance? Your Personal Allowance may be bigger.
What happens if you claim Blind Person's Allowance? Your Personal Allowance may be bigger.
What happens if your income is over £100,000? Your Personal Allowance may be smaller. (Gov.uk says: "Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above. You'll also need to do a Self Assessment tax return. If you do not usually send a tax return, you need to register by 5th of October following the tax year you had the income.")
We realise that for some, this may be hard to digest so here's a blog Jess wrote a while back - which explains it really well.
And Luke also mentions it here in his blog back in March 2021 - a lot of relatable information.
Always check gov.uk for current allowances.
If you want a DIY Kit to help you
We've got you covered with "The Self-Assessment Survival Kit"
We have lovingly put this kit together to take the stress and uncertainty out of keeping track of your tax & filing your self-assessment.
We're asked these questions a lot:
"What can I claim tax relief on?"
"How much do I need to save for taxes?"
"How should I be keeping records?"
I bet you have asked those questions at least once.
This kit can help.
We have designed it to turn your concern into calm and stress into success.
"Tell me more!"
"The Self-Assessment Survival Kit" includes:
Our very clever "Sole Trader Tax Tracker" to help you keep your income & expenditure in one place AND keep track of a potential tax bill at the same time - even if you have another job!
Our PDF "Guide To Common Allowable Expenses" to help you understand exactly what you can claim tax relief on!
Our "Self-Assessment Checklist" to help make sure you've got everything you need to hand before you start!
A "Good To Know" PDF with useful information so you're not caught out!
A "Guide to HMRC Expense Categories" so you know exactly what the tax office expects from you.
Let us introduce ourselves...
Hey! We're Jess & Luke.
Together we run Middleton Professional Accounts Services or MPAS UK for short.
A Bookkeeping & Accountancy Business
We help die-hard business owners understand exactly where their
money is going and how it's working for them, enabling them to feel super confident in their business finances and take their business to new heights!
We have not only dedicated ourselves to doing our very best for our clients, as any accountant should, but we are also advocates of keeping things simple.
Our methods have not only helped us scale our own business, but are helping our clients plan and invest in their business' future!
We started our business from scratch.
Without loans, grants or any financial backing. It was scary, hard and overwhelming at the best of times.
As our business grew we knew we needed to establish a firm foundation for our business to thrive and to have the financial stability we craved.
More over- we knew we needed to help others lay their foundations.
Cue your solution...
The Self-Assessment Survival Kit
I know, I know. The entire kit is worth over £180.
And trust me, it's 100% worth it.
The Self-Assessment Survival Kit is more than just understanding what you will owe on taxes.
It's about developing a habit of financial literacy and confidence.
Don't take our word for it...
A few FAQ's...
The Self-Assessment Survival Kit
My self-assessment isn't due to be filed until 2024;
why should I buy this kit now?
1. "Preparation is the key to success". Getting confident and understanding what's going in your business is how it will succeed.
2. Buying this kit now will help you plan and better invest in your business going forward.
But, we promise, if we don't think this is the right option for you, we'll tell you, so message us with any queries!
Will I need to buy another one for next year?
No. This Kit has been designed to be evergreen. You buy once, you buy forever. Even the personal allowances in the tax tracker can be changed.
Does this mean you won't file my self-assessment on my behalf?
Of course not! If you need some extra help, just let us know! This kit was designed for the business owner who either doesn't have an accountant or can't afford one just yet.
Will the tax tracker work on numbers?
Yes, but to a limited degree. We suggest using google sheets if you want full functionality!
are you ready for financial success?
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Copyright Middleton Professional Accounts Services Ltd November 2022
Company No: 12790703