Tax Forum :: Free Tax Advice

Hi I need some advice?

I'm full time employed but I run a small business on the side and have just submitted my tax return for 15/16.

My net profit was £2196.00 but my tax payment due by 31st is £767.40

This seems way to high, I thought I don't pay any tax up to £11,000?

Can you please advise if this is correct and what I need to do if its not?

Thanks

All your allowances are used in your employment.

The personal tax allowance for 2015-16 was £10,600. The personal tax allowance of £11,000 is for 2016-17.

the tax liability due by 31 January may also include a payment on account in relation to the current year's tax liability as HMRC assume you will have the same amount of self employment income as in the previous tax year. Whilst completing your tax return, it will provide a breakdown of how your tax liability is calculated so you can check to see if this is the case.