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| T O P I C R E V I E W |
| mighty reds |
Posted - 09 May 2009 : 19:14:39
I am declaring BR on 18 May.
As of January 2009 I owed Inland Revenue £1200 in Income Tax (tax returns from self-employed work I no longer do). As this was long before I considered BR and I had no way of paying this amount I asked Inland Revnue to take the tax owing out of my 2009/10 PAYE which they agreed and my tax-code for 2009/10 was changed to 29L (basically virtually all my PAYE earnings were subject to basic rate tax) and this reduced my Net income by about £100 a month (which figures, considering I owed them £1200).
Anyway, I almost forgot out about this as I prepare my SOA and associated stuff for BR
Questions
1. Do i list the £1200 (or what would now be about £1000) as a debt on my SOA as i guess technically because I owe Inland Revenue it's a debt?
2. If so, this debt will then cease to exist, so will my Net income go up post BR as a result of a changed tax code?
Does this make sense? if not please ask more questions and I will try and answer!
Many thanks (as ever!!!!)
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| 5 L A T E S T R E P L I E S (Newest First) |
| mighty reds |
Posted - 10 May 2009 : 11:41:24
ok thanks again Dave |
| chester2005 |
Posted - 10 May 2009 : 11:32:17
if your net pay is reduced now because you are paying tax owed through your PAYE then the net pay you receive will increase after BR.
Your pay you receive will increase GROSS because you will be paid without any reduction of Tax , the tax you should have paid with a normal tax code will be paid to you for you to pay to the OR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| mighty reds |
Posted - 10 May 2009 : 11:05:43
I'm still a bit confused about this.
Basically whatever Tax I am paying now, does it stay the same, but comes to me then I send it to the OR once I am declared BR?
Like I said before my tax code for the year is 29L so I pay quite a lot of Income Tax, I am just trying to work out if my Net take-home will be the same post BR and pre BR (when I mean Net, I mean the money I get after deductions, be it Tax deductions or OR deductions)
Thanks
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| mighty reds |
Posted - 09 May 2009 : 22:53:10
cheers Dave |
| chester2005 |
Posted - 09 May 2009 : 22:26:11
yes you should declare it as a debt and yes it will be written off in BR
after your day in court either call the tax office and tell them and they should alter your tax code back or let the OR do it as you will probably get a NT IPA anyway and the tax code will change then to NT
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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