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Where Taxpayers and Advisers Meet

POA

steiner
Posts: 4
Joined: Sun Sep 15, 2019 4:37 pm

POA

Postby steiner » Mon Sep 16, 2019 10:09 am

Hi , I hope someone here can shed some light on my problem , as I am certainly no expert in the field of tax.

When I did my Self assessment 17-18 I was asked to pay the income tax I owed for the year plus 2 payments on account.I assumed this would offset any tax for the following year.I have just submitted my 18-19 return and have been asked for the full amount ( my circumstances have not changed since last year , so the amount is similar )plus 2 payments on account …

I seem to be paying double the tax I was expecting :shock: Can anyone explain what has happened ?

Many thanks.

Jholm
Posts: 103
Joined: Mon Mar 11, 2019 4:22 pm

Re: POA

Postby Jholm » Tue Sep 17, 2019 9:17 am

Without sight of your account, nobody can say for certain. Could be an error on the system, could be that you're reading wrong, could be you any number of things. Best bet is to just ring HMRC.

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: POA

Postby robbob » Tue Sep 17, 2019 9:45 am

Probably best done by example - this is increasing tax example - if your tax doesnt increase balancing payment will not be relevant and you should have small credit - note sometime payments on account are slightly less than previous year as student loan / class2ni are excluded from calcs - so poa's may be lower than prior years tax bill

you have paid no payments on account previous to ye 5/4/2018 tax being calculated
tax ye 5/4/18 you owe £1500
tax year ye 5/4/19 you owe £1600 (final sum calculated but not known till after 31/7/2019 !!)
tax ye 5/4/2020 onwards presumed to be £1600

due 31/1/2019 ye 5/4/18 tax £1500 + 50% on account ye 5/4/2019 (we are 10 months into tax year at this point) = £750 total paid £1500
due 31/7/2019 ye 5/4/2019 50% paid on account £750

Note payments on account although for ye 5/4/2019 and based on prior year tax when calculated!

due 31/1/2020 balance of tax ye 5/4/2019 £100 (being 1600-750-750)

at this point you will have paid all ye 5/4/2019 and ye 5/4/2018 tax - so no double counting - if you payments on account made ye 5/4/2019 were more than tax due you would be due refund.

Note also payable 31/1/2020 is 50% ye 5/4/2020 tax - this will be £800 being half of ye 5/4/2019 tax - and on and ariston

steiner
Posts: 4
Joined: Sun Sep 15, 2019 4:37 pm

Re: POA

Postby steiner » Tue Sep 17, 2019 11:04 am

Thanks for the replies.Maybe I will ring HMRC next week to ask about this.When I got to the final page of my SA , at no point was the amount that I had paid on account mentioned , and the tax due was the full amount I was expecting.

I calculated this assuming -

12 k personal allowance
1 k allowance for interest
7 % tax on divis
also accounting for small contribution to pension.

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: POA

Postby robbob » Tue Sep 17, 2019 1:20 pm

When I got to the final page of my SA , at no point was the amount that I had paid on account mentioned , and the tax due was the full amount I was expecting.
that is how it works the payments on account don't form part of the actual submission , but any payments on account made will be sat waiting to reduce the bill as soon as its processed so you don't need to worry.

steiner
Posts: 4
Joined: Sun Sep 15, 2019 4:37 pm

Re: POA

Postby steiner » Tue Sep 17, 2019 4:03 pm

Maybe , but I did complete the submission and made a note of the amount to be paid .If the POA s were taken into account I should have a small credit , not be asked to pay almost the same as last year plus the next 2 POA s.

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: POA

Postby robbob » Wed Sep 18, 2019 9:23 am

You are best to wait to tax return has been fully processed and then check view account for tax year ended 5/4/2019 and also current tax position

You will find there that the payments on account made will have been credited against final calculated ye 5/4/2019 liability on the updated liabilites pages reducing the os balance - there is nowhere else really for these payments to go as long as they have been correctly allocated onto your sa record.

If they are missing you are best to contact hmrc.

steiner
Posts: 4
Joined: Sun Sep 15, 2019 4:37 pm

Re: POA

Postby steiner » Wed Sep 18, 2019 11:46 am

Thanks for your help , I`ll try that.


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