Hi, for the tax year 2021-2022 I worked mainly through an umbrella company and a few months as a sole trader so I now owe approx only £800 in tax as the rest was PAYE. I understand this means that I do not need to make any payments on account on this occasion.
My query is whether I should inform HMRC that as I am now working a sole trader, I will owe a lot more tax for 2022-2023. Should I offer to make payments on account knowing that I will have a higher tax bill next year or can I pay my tax like a first time sole trader?Understandably this will be a larger amount of tax which I can afford to pay. Thank you.
I was employed by an umbrella company throughout 21/22 and for a few months into 22/23. My tax code was increased by approx £123 to allow for professional subscriptions. A few months into tax year 22/23 my employment with the umbrella company ended and I
am now working only as a sole trader. The umbrella company deducted tax from my wages for April and May 2022 (approx £470).
Should I mention my subscriptions also on the expenses section of the self assessment form?
Was the tax deducted by the umbrella company based on the slightly higher tax code or does this only come in to effect when your earnings reach this amount?