I understand that HMRC is expecting sole traders to file tax returns quarterly after April 2020. I am semi-retired. In February each year I get an annuity lump sum (approx half the annual tax exemption amount). On top of that people pay me for gigs at random times, but mostly in the winter. I know I can claim electricity for my home office etc 12 months of the year. At the moment those expenses taken away from my small income leaves me with more or less the annual tax exemption amount, so I pay no tax each year - or perhaps about £200 overall.
So will I be charged a huge amount of tax in one quarter which I shall actually have to pay, and then make huge losses (ie still the expenses but 0 income) in other quarters and then have to claw this money back from you - and wait for it to come? Can people in my position still wait till the end of the year before you work out we don't need to pay anything?
Also what happens if I have a bad year and claim more in the 12 months of expenses than I actually earn, ie make a paper loss. Do you pay me money? Thank you very much for your help.