Episode 21: The Tax Bill That's Actually Two Bills — And Why Most Bakers Don't See the Second One...

Send us Fan Mail (https://www.buzzsprout.com/2553269/fa...) Ever filed your Self Assessment and found yourself staring at a number that's much higher than you expected? You're not alone — and in this episode, Annie explains exactly why that happens. The short answer: your tax bill isn't one bill. It's two. And if you don't know about the second one, it can feel like a real shock. In this episode, Annie covers: When your first tax bill actually arrives — especially if you're newer to self-employment. The tax year runs April to April, and your first return isn't due until the January after that year ends. If you started your business in autumn 2026, your first deadline is January 2028, not January 2027. National Insurance for sole traders — how Class 2 and Class 4 NI work, why they show up inside your Self Assessment total rather than separately, and why it matters for your State Pension. Payments on account — what they are, when they kick in (when your Self Assessment bill exceeds £1,000), how they're calculated, and why the first time you encounter them can feel like a double hit. Plus: why they're not extra tax, and how the rhythm evens out over time. How to prepare — including setting aside 20–30% of income throughout the year, and when it's legitimate to apply to reduce your payments on account. This is the final episode in the April finance series. If you've been listening along, you now have a solid grounding in expenses, record-keeping, tax changes, and what your Self Assessment bill actually looks like. Well done for showing up for your business finances. Want to go deeper? The Home Baking Business Academy has a full financial programme this April covering everything discussed across episodes 18–21 — in the practical detail that's actually relevant to running a baking business from home. https://anniebennett.co.uk/the-home-b... For regular delves into baking business matters, including taking part in podcast episodes: https://anniebennett.co.uk/#subscribe For free tips, insight and real-world business talk: Follow me on social media   / thehomebakingbusinessacademy     / thehomebakingbusinessacademy     / hbbacademy     / annie-bennett-hbba   For her website with all this and more: anniebennett.co.uk (http://anniebennett.co.uk) Please note: this episode covers general information for sole traders in the UK and is not financial or tax advice. If you're unsure about your specific circumstances, speak to a qualified accountant or tax adviser. Support the show (https://www.buzzsprout.com/2553269/su...)