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how does it all work? eh? anyone ever had problems with tax? what happened? i'm scared.
Did you fail to fill in your tax return?
because i earnt less than personal allowance?
They may owe YOU money. Who was paying your tax for you, an agency? Also, did you keep your payslips?
even if you earnt next to nowt. they will probably try and charge you £100 for late submittal, but you may be able to appeal against it. i did mine late but it turned out i didn't owe anything and actually got a tasty rebate. they still want £100 off me but i am appealing it because they didn't send me my registration code in time. just give them a phone, the self assessment helpline people are really nice and helpful, in my experience.
as far as I know they just send you a letter once a year saying 'you may have paid too much tax, please let us know your employment details for the last 12 months' I have never returned this letter ever, nothing has ever happened to me, except the one time I filled it in months late and got £400 back
because I didn't really understand how it all worked and assumed there was no point as I wouldn't have to pay any extra tax anyway.
Turned out I had to pay £11.
Or now make that £111. Urgh.
The online self-assessment is actually pretty easy. Also there is nothing illegal about fucking it up, even if it's pretty stern on the wallet...
2. I didn't think I should be paying tax, but I enrolled online anyway, and I didn't appear to have to pay any tax
3. This was because it was before April.
4. Months go by. I went travelling for two and half months, during which time I am sent a raft of warning letters.
5. And then I get back and have a letter informing me I have been fined £100 for late payment
6. I go and fill out my tax return online, which is now possible, and had indeed been possible since April.
7. I owe £11 of tax. Gripped with anger and self-recrimination.
8. Read this thread. Reminds me I should probably pay the tax off.
9. HAPPY ENDING - I go back online and it turns out they won't fine you more than the amount of tax you owe, meaning I just paid a svelte £22.
10. OMINOUS RUMBLINGS - I am about to register as self-employed... given how much I fucked up paying a tenner I dread to think what's going to happen there.
Er, but self-assessment seems simple enough, was my fuck up, basically
I got overtaxed, but it fixed itself soon enough and I got £600.
you don't pay tax on the first £6000 you earn in a year, you pay 20% on everything above that. If you earn say a grand a month they will assume you are earning £12k a year, they work out you should pay 20% of £6k, which I think is £1200, they will divide that by 12 and work out you would be paying £100 a month. So when you stop working it means you have probably paid more tax then you should as their assumption of how much you would earn in a year was wrong. They normally send you a form asking for details of where you have worked in the past year, when you fill that in they will know if you are due a rebate, I didn't bother filling in that form last time I was due one so ended up having to write to them, I think people normally cant get their rebates until the end of the tax year. As far as I know tax returns forms are for self employed people and businesses etc.
which is they normally take more than they should rather than less, so its nothing to worry about
nothing to worry about unless your intentionally conning them.