Accountancy Forum

Hi all,

I'll try keep this short and to the point.

I have been operating as a self-employed web developer for about 1.5 years. the first 6 or so months of that were very sketchy doing odd jobs etc. The last year has been more full time.
I haven’t as yet paid any tax or national insurance contributions etc. I'm not even sure the relevant authorities know I exist... Tax return time has swung round and I really need to act.
I plan to gather all invoices raised and bank statements available, get together anything redeemable(phone bills, equipment purchases etc) and organise it. Chances are not much will link up as I’ve not taken thing as seriously as I should.

Now, How much am I likely to pay back, if my income for the last year or so has been in the £30-40k region?
Is there Any way of getting out of full repayment? I ask this as I understand there is certain leeway for someone in the first year of operation? Correct me if I'm wrong.

I have no idea where I stand at the moment.

Also note, I haven’t been saving much if anything (.

to summarise. I am soon to inform the revenue I've been working self employed the last year at least, tell them how much I believe to have earned, show my somewhat scrappy records and only have about £3k to my name.

Any help/advice/suggestions/b*llockings is/are very welcome!

Regards,
Phil

<font color="blue"><b>This thread should have been posted under taxation.
I am moving it in the relevant section. I am also modifying the topic title to make it more descriptive.</b></font id="blue">

I am giving the answer in anticipation that u have asked the question regarding pakistani tax laws, as this is website of pakistani accountants. If u have asked in UK context, then ignore my reply...
In Pakistan after the introduction of voluntary return scheme, the tax authorities have to accept the tax return submitted by an individual, irrespective of its accuracy. The revenue department then picks on random basis, individuals and companies for audit purposes. So, they will accept whatever u show them without an evidence. But, if u claim any adjustment of advance tax paid on telephone or electricity or any other asset, then u will have to submit the bills or invoices...
But the first thing u have to assess is that whether u r liable to file a return of income or not...Following is the list of people who have to file a return...
(a)every company
(ab)every person (other than a company) whose taxable income for the year exceeds the maximum amount(Rs. 150K) that is not chargeable to tax under this Ordinance for the year;]

(ac)any non-profit organization as defined in clause (36) of section 2; and]

(ad)any welfare institution approved under clause (58) of Part I of the Second Schedule;]

(b)any person not covered by clause [(a), (ab), (ac) or (ad)] who,-

(i)has been charged to tax in respect of any of the two preceding tax years;

(ii)claims a loss carried forward under this Ordinance for a tax year;

(iii)owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory.]