Tax payment question

whitelightrider

Hi folks,

My wife is working as a teacher on part time hours - 12 to 16 hours per week.
She has also set up her own business and has just hired an accountant to sort out her tax returns. She is paying tax as being self employed until the business is registered in the new year.

Her accountant has come back to her with a tax bill that needs to be paid but is saying that it has to be paid in full by next Tuesday. Just wondering if this is the case as she wasnt expecting it to be this close to Christmas. If it has to be paid in full then so be it, but I was just wondering.

jockey#1

whitelightrider wrote: »

She is paying tax as being self employed until the business is registered in the new year.

Her accountant has come back to her with a tax bill that needs to be paid but is saying that it has to be paid in full by next Tuesday. Just wondering if this is the case as she wasnt expecting it to be this close to Christmas. If it has to be paid in full then so be it, but I was just wondering.

If she is not registered then why is she paying tax?
If she is self employed then the tax return deadline was 31st of October, if she only set up then she should make some form of preliminary tax payment. There is no official tax deadline as such next tuesday!

whitelightrider

jockey#1 wrote: »

If she is not registered then why is she paying tax?
If she is self employed then the tax return deadline was 31st of October, if she only set up then she should make some form of preliminary tax payment. There is no official tax deadline as such next tuesday!

The business has been on the go since the end of 2007, but she was declaring what she earned. This is the first year she has an accountant as a relative did it for her last year. She pays her tax as a teacher, and is also self employed in the business venture until next year.

Her accountant told her that the returns were in October but it took them a while to sort through things so she's paying the fine. He told her that it had to be paid in full by Tuesday. All 2,500 so she's a bit taken aback.

As she said if she's earned it then she has no problem paying it. But its a big amount to be hit with Christmas week.

maddogcollins

It may be a case that your accountant is on holidays from tuesday evening. If this is the case and its not paid by then, more interest will be added and it may not be returned until around January 4th (when most practices will re-open).

I believe interest is 0.0219% per day, meaning and extra 12days interest would be added.

exaisle

Why are you asking this here?? She's employing an accountant. Ask him to explain all of this. That's what she's paying him for. If he doesnt give a satisfactory answer, use somebody else next year.

Do you really think you'll get better advice here for free than you will from somebody to whom you're paying a fee?

E.