For those of us who have, to date, paid divvies up to the higher rate threshold, this is a bit of a novelty.
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Dividend tax >> All Ltd Co contractors to payment on account....
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Originally posted by TheCyclingProgrammer View PostOf course you’ll need to make POAs. Why is this a surprise? Why should you get at least 9 months credit terms to pay your tax bill when most people have to pay tax each time they are paid?
The feckers should have had at least some decency to factor in money ALREADY PAID ON ACCOUNT when they give you tax due breakdown on next self-assessment
The real bad news is that quarterly returns are coming...Comment
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Originally posted by AtW View PostPerhaps because those who have to fill in self-assessment pay vast majority of income tax?
The feckers should have had at least some decency to factor in money ALREADY PAID ON ACCOUNT when they give you tax due breakdown on next self-assessment
The real bad news is that quarterly returns are coming...
This is pretty standard accounting practice. If you had £100 on account with a supplier and purchased something for £100, you wouldn’t owe any money because the amount already paid on account would cover it but you’d still expect an invoice for £100 wouldn’t you?Comment
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Originally posted by TheCyclingProgrammer View PostCitation needed.
"top 10pc of taxpayers, who earn over £51,400, are paying nearly twice as much towards the UK's total tax take than the wealthiest decile did in the Seventies. Collectively they now pay 59pc of total income tax, up from 35pc in 1976."
Tax burden on the wealthy has trebled since the 1970s, Telegraph analysis shows
Number of self-assessments is over 10 mln: https://www.gov.uk/government/news/a...elf-assessment
So, if 1% pays 27%, then I reckon all these people combined DO pay vast majority of tax in UK.Last edited by AtW; 14 October 2017, 23:17.Comment
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Originally posted by TheCyclingProgrammer View PostThis is pretty standard accounting practice. If you had £100 on account with a supplier and purchased something for £100, you wouldn’t owe any money because the amount already paid on account would cover it but you’d still expect an invoice for £100 wouldn’t you?Comment
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I’m not sure it necessarily pans out the way you think - loads of lower earning small business owners and sole traders/people with modest rental income are on self assessment. Lots of rich people on massive salaries that are paid by PAYE. But even if you’re right...
I’m still not sure why that means people who pay more tax should get massive credit terms. Surely if the majority of tax is coming via self assessment then it’s better for it to get collected sooner rather than later?
As I said, having to make two payments - one 10 months into the tax year and one 4 months after it’s finished - still gives you much more flexibility in terms of cash flow than anyone on PAYE.Comment
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Originally posted by AtW View PostI'd expect supplier to have user friendly system that would show overall balance that factors in payment on account, with words such as - NOTHING TO PAY, THANK YOU.
But if you just think of your tax calculation as your invoice then all you have to do is log on a few days later once your statement of account has been updated to see exactly what your account balance is. It’s not exactly rocket science.
Yes it would be better if your statement of account updated automatically and this was shown to you after submitting but this IS HMRC we are talking about.Comment
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Real problems are -
1. You only learn about payment on account when it suddenly jumps on you, most likely couple of weeks before due date
2. Then you get another shock next year when tax calc ignores prepaid money FOR THAT FOCKING TAX YEAR - it's not a generic payment on account, but a payment for THAT SPECIFIC YEAR
Finally, I was right in my statement that those who fill SA pay most of income tax, respect the taxpayers!Comment
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Also, if tax year not over, how the fook one supposed to know full earnings if there were one offs?
At the very least prepayment should have covered ONLY time before submissionComment
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