Payments on account, sole traders

Hello

 

I have had a call from a sole trader today very angry because they say I did not explain payments on account.  I filed their return and there was no tax to pay. I did mention there could be tax due next year and to put some money aside, ideally monthly.  They said they would have paid something now if they had known, I tried to explain how it works but they would not listen and now want to go to someone else.   Chances are this persons profit this tax year would not even generate much of a tax bill anyway, but there you go.

 

Anyone else had any problems with this sort of thing ??  I know it is sometimes a shock for people in first year of trading who have a tax liability and also have to make a payment on account!

 

Comments
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Yes, always the same problem.

0098087 |

Good idea, will definately

naive |

Yes common problem

Paul Scholes |
Paul Scholes's picture

All valid points

Kent accountant |
Kent accountant's picture

Thanks, no profit last tax

naive |

.

ireallyshouldknowthisbut |

@ireallyshould... you have it spot on

ShirleyM |
ShirleyM's picture

Earlier Returns Would Help

jford |

Point them at

ACDWebb |
ACDWebb's picture

Earlier returns would help nonsense

edward33 |

'

ACDWebb |
ACDWebb's picture

The pub

jford |

Ouch(ish)

Paul Scholes |
Paul Scholes's picture

Earlier accounts & tax preparation definitely better for client

DMGbus |
DMGbus's picture

haha ... you have been well and truly 'had'

ShirleyM |
ShirleyM's picture

Fair dos

Paul Scholes |
Paul Scholes's picture

Flash was right

edward33 |

Limited

Sherman Holter |

How right you are

accountingterrier |

@sherman

pauljohnston |

can be extreme

daveforbes |
daveforbes's picture

I always recommend putting

joannenockels84 |

Noooo!

joannenockels84 |

This thread

RebeccaBenneyworth |
RebeccaBenneyworth's picture

"Disappearance of the dreaded POA"

cfield |
cfield's picture

Now try explain this one

The Black Knight |

@the black knight

daveforbes |
daveforbes's picture

why ?

The Black Knight |

sorry I misunderstood

daveforbes |
daveforbes's picture

Start ups

RebeccaBenneyworth |
RebeccaBenneyworth's picture

same culprits every year

The Black Knight |

Black Knight

pauljohnston |

@joannenockels84

ACDWebb |
ACDWebb's picture

An employee has to pay the tax at the time they get the income..

ringi |

Juggling

The Black Knight |

But all good parents teach

ringi |

then

The Black Knight |

Will that not mean the tax

joannenockels84 |

Yes possibly

ACDWebb |
ACDWebb's picture