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Quarterly tax returns

11/03/2019 07:44:47
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.
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Re:Quarterly tax returns

11/03/2019 12:52:22
Hi,

At the moment there is a Pilot scheme to work out exactly how the scheme for quarterly reporting will work in practice.

It appears (however may be subject to change) that the bill will still be paid at the end of the year however you will have the option to pay throughout the year if you would prefer.

Here is the link to the guidance:

Helping businesses, self-employed people and landlords get it right first time

Use software to send Income Tax updates

With regards to making a loss, you would need to have paid tax elsewhere to get a refund. Otherwise you can carry the loss forward and set it against future profits.

Full details are here:

Losses: HS227 Self Assessment helpsheet
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Quarterly tax returns

03/04/2019 08:36:08
Thank you for the above. I looked at the weblinks, but none (apart from perhaps carrying a loss forward - though I cannot remember where to put this when I last filled out my self assessment) appears to answer my question. Though you did kindly say that we don't need to pay the bill until the following January as normal? So perhaps I can get away with only filing online once as I do today - and therefore keeping with my standard yearly account spreadsheet? Or will everyone have to put their expenses for home electricity, phone bill etc into 4 different spreadsheets, and each quarter has only 2 gigs at £200 = a loss that quarter - onto an online self assessment every single 3 months!!?
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Re:Quarterly tax returns

03/04/2019 15:00:39
Hi,

The previously mentioned pilot scheme, being run at the moment, will iron out any issues which small businesses and/or HMRC are having with the system.

Customers are required to submit updates of their summary business information in at least 3 monthly intervals via their software.

You can make payments throughout the year at any time but the final amount will be payable by 31st January.

Thanks for your question.

Would you be interested in helping us improve the Forum? We are looking for volunteers to spend some time speaking with our research team. If you think you could help us, please click the link below for more information and to register your interest:

https://docs.google.com/forms/d/e/1FAIpQLSc0At8nLGwwiW-uE98PBLi9rvu3BtsAzE80hv2Q49iuFM1y-A/viewform?usp=sf_link.

We look forward to hearing from you.
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Quarterly tax returns

25/04/2019 15:36:56
Actually I am very happy with the forum as it is, thank you. I saw your words "Customers are required to submit updates of their summary business information in at least 3 monthly intervals via their software."

So does that mean that all my questions - and for all occasional gig economy people - are to be ignored, and it will be compulsory for us to add up our allowances, divide by 12, multiply by 3, then put in a loss - every single 3 months? This is really overkill for literally a couple of thousand pounds gig income over a year?

I am glad that we don't actually have to pay you one overall (small) amount until the following January as we do now, but the paperwork to divide everything up into 4 - and still make sure it adds up to the existing amount - is a lot of effort for no benefit?
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Re:Quarterly tax returns

26/04/2019 10:51:22
Hi there,

As previously advised, this is a pilot scheme at the moment and we do not yet have answers to specific questions, including which customers will be required to sign up for quarterly reporting.

The link you were previously given has been updated this week to include a recorded webinar. This is the most up to date information available and the page will include ongoing updates from the pilot scheme.

Please see the following link:

Help and support for Making Tax Digital

Thanks for your question.


Would you be interested in helping us improve the Forum? We are looking for volunteers to spend some time speaking with our research team. If you think you could help us, please click the link below for more information and to register your interest:

https://docs.google.com/forms/d/e/1FAIpQLSc0At8nLGwwiW-uE98PBLi9rvu3BtsAzE80hv2Q49iuFM1y-A/viewform?usp=sf_link.

We look forward to hearing from you.

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Quarterly tax returns

07/05/2019 10:49:55
Thank you very much for coming back to me. I did look at the links but they are for agents (?) and people who earn enough to charge VAT. Not tiny occasional gig earners like me!

So glad it's not set in stone, and please do forward to those making the decisions to let small self employed sole traders (gigs) off the hook re quarterly allowances accounting + one or two bits of income, thank you.

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