don't understand the payment system for the first few years

[hannah]

Hello, i'm 18 and i'm planning on starting my own business about christmas. I understand that for my first tax year (2003-2004) it would run from about christmas 2003 to April 2004, then for my second year (2004-2005), would be christmas 2003-christmas 2004, (with overlap profits), however i don't know how i'd pay these taxes.
I know that there are three payments, one at january during the tax year, july following the end and january of the next year, however i don't know how these payments are calculated, so i don't know how to apply this to my situation.
As i'd start christmas 2003, Would i pay my first tax bill Jan 2004 (and is there anything else i have to pay apart from the tax on my profits till then?), and from then on what do i pay for my july tax bill as well as my profits to then and then what for the following january tax bill?
Also is there some kind of percentage that is a guideline on how much tax they take? (i.e. like VAT is 17.5%)? or should i just hand my profits in and hope i don't go bancrupt!?
I've spent hours slogging over the Inland Revenue site hope someone can help.

[deanshepherd]

Basically, you will not be paying any tax until 31st January 2005. That may be your balancing payment for 2003/04 and your first payment on account for 2004/05. Your second payment on account for 2004/05 will be due on 31st July 2005 and the balancing payment for that year on 31st January 2006 and so on.


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