UK Self Assessment Calculation

[Granny]

Hi
Can anyone help please?
I am completing online self assessment for self and wife, we are partners in a small cleaning business.
Partnership Tax Return and Partnership Statement have been submitted.
Turnover was £21000
Expenses £4200
Net Profit £17620
Each partners share of profit £8810
I have entered everything correctly AFIK but the calculation before I submit shows that we will have to pay around £5000 each!!!! and £2000 in July 2016
I daren't click SUBMIT
How can that be right? personal allowance is £10000
Profit is almost the same as last year and I paid about £500 in tax.
Impossible to get through on the phone as I'm sure many are aware.
Thanks
Granny

 

[Becky]

Hmmm like you say, that doesn't sound right at all! Unfortunately to me it sounds like there is probably an error in the submission somewhere, so it might be worth going through everything very carefully, line by line, and check your figures. It may be that there is an extra '0' somewhere which is what is throwing up such a big tax liability.

 

[Granny]

Hi Becky Thanks for the reply. I bit the bullet and waited on the phone to HMRC only 25 mins. to get through!! Not too bad. Best to call at 8.00 a.m.
There is a pull down box "Were you self-employed?" I answered YES but if you are in a partnership you have to answer NO. (Even though I am self-employed)
I entered the total business income then later added my partnership income it doubled them up and came out with £5000 liability.
I deleted the self-employment section filled in only the partnership section and Hey Presto £530 to pay.
I'll sleep a lot better tonight I think!
Still puzzled about the amounts though my partner has to pay £58 on £8810 income. What has happened to the £10000 personal allowance? Unless it may be NIC payment which I believe is now collected as part of the tax return.
Thanks
Granny

 

[Becky]

Ah that's brilliant, I'm very pleased to hear you managed to find what was causing the problem! As to the liability, I'm not sure. The Personal allowance for 2014/15 was £10,000 so without seeing the figures I'm not sure why there is a liability. Either there is some extra income taking your partner above the PA, or the PA has been restricted for some reason. Might be worth checking with HMRC...!