Payments on account when SE ended

[philly]

In 2010-11 I was both employed and self-employed. In Oct 2011 my self-employment ended. I would like to reduce the payments on account due for 2010-11 as the majority of tax in 2011-12 will be deducted at source through PAYE. For example:
- PAYE income 2010-11: £40,000
- self-employment income 2010-11: £9,000

- PAYE income 2011-12 (estimated): £50,000
- self-employment income 2011-12 (actual): £2,500.

How do I calculate the payments on account I have to pay by 31 Jan 2012 and later by 31 Jul 2011?

[mullet]

How do I calculate the payments on account I have to pay by 31 Jan 2012 and later by 31 Jul 2011?

By an educated guess. Look at the likely liability for the year, and simply halve it. Then apply to reduce your POAs (form SA302 if I remember correctly). If it's nil then reduce to nil. If it transpires that your POAs were too low, then they will be adjusted when your tax return is processed and you will pay interest from 31 January and/or 31 July to the date of payment. The interest rate is only 3% at the moment.

[mullet]

Just re-reading the question ...

I would like to reduce the payments on account due for 2010-11

The POAs were due to be paid on 31-01-2011 and 31-07-2011. The tax return was due by 31-10-2011 (paper) or 31-01-2012 (internet). I don't think that you can reduce them now.

Once your 2010-11 return is processed, then the system will set the 2011-12 POAs as 50% each of the total liability from 2010-11. It is the 2011-12 POAs which need to be adjusted because of your ceased self employment.

If you have no significant expenses for 2011-12, then simply calculate POAs as follows: £2,500 @ 40% = £1,000 = 2 POAs at £500 each.