Preliminary Income Tax - Query

sally365

Hi,

I will be required to pay Preliminary Income Tax for 2013 in October 2013.
 
This amount will be based on my trading Income for 2012.

I was employed with a company in 2012 (This is where the confusion is for me, im not sure how to deal with the Tax, since I was a PAYE worker till Nov, I thought Preliminary Income Tax was an estimate only for the next year?) , started as a sole trader in start of Nov 2012.


Is the process of filing Preliminary Income Tax straight forward in this case ? I'm assuming all the details i need is in my p45.


Another question: Do I claim my tax credits back when i do my Preliminary Income Tax ?

Is there a process I could follow for calculating this myself or would you advise I get an accountant to do it for me ?

Thanks.
Sally.

Bold Abdu

You have a Nil preliminary liability to pay in Oct 2013.

Do you need an accountant? Probably, if you don't understand the rules etc.

Alan Shore

sally365 wrote: »

started as a sole trader in start of Nov 2013.
.

Preliminary Tax is a payment on account for the current year. In computing the the amount you owe you have two options: 100% of the prior year or 90% of the current year.

So if you have no self employed income in 2012 then you have a zero liability so 100% of that is zero.

angeldelight

Do you mean November 2012 or 2013? If November 2012 you would need to pay preliminary tax for 2013 of 90% of 2012s liability and also the balance of income tax for 2012

sally365

Sorry I registered as a sole trader in Nov 2012 (Didn't actually start trading in Jan 2013), thanks for spotting my mistake.

What do you mean by 2012s liability?

Cheers i'm organising an accountant tomorrow This is all very new and scary

Bold Abdu

Still a nil Prelim' liab' to be paid this month.

sally365

Cheers for that, I believe i'm due back tax credits how would I claim those back using ROS?

sally365

it's fine