Tax Changes

[FCMR]

I wonder how all you office workers or cards in employed feel about the new tax changes. If Ive read it correctly the new system will mean that those mentioned above will be paying their tax plus moneys on account (in credit). In the construction industry, if you are self employed you pay tax a year ahead, very strange when you dont know what your earnings will be. Why does the taxman want more of you to pay extra money on account, Is the Government a bit strapped for cash. Im glad that its not just going to be the builders that pay up front

[crumlin]

I think you will find that what was said is that you would be allowed to pay money on account to be taken off your tax bill at a later date.

[When Skies Are Grey]

basically a trading withholding tax....fits in nice with the EU savings directive...well the incinerator/Iris/new hospital/house of keys all has to be paid for with something you know...

[crumlin]

Will that pay for the aledged £2million worth of defects at the new Hospital or is it to cover the cost of shiping waste of the Island

[simon]

I already pay most of my tax in advance. I receive the tax assessment ahead of that year's return. Every January I receive an assessment for the current year and an updated (final) assessment based on the previous return. Either I owe the IOM or the IOM owes me. I don't currently pay very much in taxes since I don't currently earn very much. And it varies every year.

 

It always takes me a few days every year to get my head around understanding again what I've paid in advance and what I actually owe. I've never had a problem with the system - I've always assumed that the tax bill would be higher if it was paid in arrears.

 

But I find that the people who work at the Income Tax office are hugely helpful and patient with me when it comes to explaining it all to me. I could make it all simpler by employing an accountant but my time is cheaper - and my little company (for which I also have to submit a return) isn't currently required to submit audited accounts.

 

But how, specifically, would this work for PAYE taxed people? What I mean is - how will the system be implemented? Practically - will PAYE people really be required to pay their taxes ahead of receiving their pay? It seems unlikely to me. How would the change - over period be handled?

 

Sometimes I wish that I studied accountancy. Changes to the tax system must make accountants very happy.

[BigDave]

But how, specifically, would this work for PAYE taxed people? What I mean is - how will the system be implemented? Practically - will PAYE people really be required to pay their taxes ahead of receiving their pay? It seems unlikely to me. How would the change - over period be handled?

 

Nothing will change for this (incidently the IOM runs ITIP, which is a slight variant of UK PAYE apparrently) as income from employment is already taxed on a current year basis.

 

When I spoke to the tax office yesterday they told me the changes that were being made related to income from investments and interest etc etc on which the tax payable was previously estimated based on the last year's assessment. (Then adjusted at year end as appropriate) - So basically anything not taxed at source is subject to the new system (I think)