Tax self assessment

[SwingsitlikeHogan]

Quickie question on NICs for those who know.

My lad's tax return for 2019/20 indicated that he is due to pay £159. I can't see why, as his self-employment income was less than the threshold (£6475) and his NICs for his employed work were deducted by his employer. I know the £159 is 52x the minimum contribution of £3.05 - but does he have to pay it - or is it voluntary?

If it is voluntary it seems to be worth paying as it seems to cost about £800 for every previous year missed you may wish to catch up on, and as he's still under 30 I'm thinking it's not worth doing that catch-up.

 

[Mudball]

Got a letter from HMRC saying that my tax codes have changed for the year.. does anyone understand what AB123 mean ... i am assuming the office does. It is one more dimension that makes it so complicated and feel smoke and mirrors.. in reality should be more straightforward

 

[need_my_wedge]

Got a letter from HMRC saying that my tax codes have changed for the year.. does anyone understand what AB123 mean ... i am assuming the office does. It is one more dimension that makes it so complicated and feel smoke and mirrors.. in reality should be more straightforward

1250L is the most common, used for most people on PAYE with no extra benefits. Means you can earn £12500 a year before they start taxing you. This link explains other characters

https://www.gov.uk/tax-codes

This link explains how to calculate your tax

https://www.gov.uk/income-tax-rates

Edit:
Should have added this link too, very useful. Put your total earnings in, put your tax code in, and it tells you how much tax and N.I. you will pay.

https://www.gov.uk/estimate-income-tax

 

[Redtraveller]

Anyone good at self assessments and can give any advice for a first timer? Please drop me a DM if so

 

[GreiginFife]

Anyone good at self assessments and can give any advice for a first timer? Please drop me a DM if so

With all of the changes I would recommend getting accountancy help on this.

 

[Redtraveller]

With all of the changes I would recommend getting accountancy help on this.

Cheers, I usually would but looking at a charge of around £200 it’s not really worth it as the advice would end up costing me more

 

[GreiginFife]

Cheers, I usually would but looking at a charge of around £200 it’s not really worth it as the advice would end up costing me more

Unless you get it wrong and fall foul of one of the new penalties.