Newbie to tax return

polydactyl

So I am and always have been a public sector worker. For a few reasons I now also have a supplementary private income so am clueless re tax. The private income has 20% taken off at source. So I now need to pay another 25% on the rest? I only started getting this extra income this year so I understand I should be paying tax on private income for 2015 (none) in Nov and pre paying the tax that I expect will need to be paid in 2017 in advance? Is that correct?

Lockedout2

Self assessed people have to pay preliminary tax in respect of the current year in October each year.

So in October 2016 you pay your preliminary tax for 2016.

You could estimate what your income will be for 2016 and estimate what your expenses will be. The compute the tax 50% of the profit then deduct the withholding tax from that amount and pay the balance.

Or do what most people do amd pay nothing in Oct 16 and pay two years in October 17.

Choc Chip

Chat to an accountant or tax advisor re. your first year. It's worth getting a steer on what you should be doing and getting it right the first time. You can then decide if you want to take a stab at it on your own in future years.

On your preliminary tax, not meant as professional advice, but there is no requirement to pay PT in advance of filing your first year's return.

polydactyl

Thanks I think I would rather pay this year and again next year than two years next year just incase.

So it's 50% tax on earnings not 44% (not sure where I got that figure) ?

Also no clue about expenses so guess I better get looking a thanks