Preliminary tax for this year 2020

[wk74239]

Hi All,

I have been a sole trader since Jan 2018, in 2018 I made no money, and made money in 2019, am I obliged to pay preliminary tax for 2020, or am I ok paying my 2019 liability, and paying 2020 liability at October 2021

 

[jpd]

You were due to pay preliminary tax for 2019 in Nov 2019 and the balance in Nov 2020 when you submit your final 2019 accounts
However, the preliminary tax due can be based on your 2018 tax, which you said was zero. So no preliminary tax for 2019 due

In Nov 2020 you will have to pay the tax due on your 2019 accounts plus the preliminary tax due for 2020. This can be either the tax you paid for 2019 or an estimate of what you owe (if your estimate is less than 90% the actual amount you calculate in 2021 you are liable to a penalty)

Basically in Nov 2020 you will have to pay two years in one go

 

[wk74239]

You were due to pay preliminary tax for 2019 in Nov 2019 and the balance in Nov 2020 when you submit your final 2019 accounts
However, the preliminary tax due can be based on your 2018 tax, which you said was zero. So no preliminary tax for 2019 due

In Nov 2020 you will have to pay the tax due on your 2019 accounts plus the preliminary tax due for 2020. This can be either the tax you paid for 2019 or an estimate of what you owe (if your estimate is less than 90% the actual amount you calculate in 2021 you are liable to a penalty)

Basically in Nov 2020 you will have to pay two years in one go

And if I plan to cease trading this month, surely I will not have to pay double tax in November 2020

 

[jpd]

If your estimated profit for 2020 is zero then your preliminary tax will be zero as well