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Where Taxpayers and Advisers Meet

Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Bizman
Posts:34
Joined:Sat Oct 21, 2017 9:18 pm
Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Postby Bizman » Mon Jan 10, 2022 12:17 am

I have done my online self-assessment for tax year 2020-21. The sum HMRC are asking me to pay on the final screen does not deduct the two Payments on Account sums for 2020-21 I paid in advance, in January and July 2020.

I would have thought that in this day and age HMRC's calculation of the sum due would have deducted Payments on Account amounts paid?

Therefore, do I need to manually calculate the amount I have to pay HMRC for 2020-21 (and the next Payment on Account) after deducting the 2020-21 Payments on Account amounts already paid?

Do I need to notify HMRC somehow (how?) or will their calculators automatically calculate the Payments on Account amounts paid? I don't wish to suffer any issues because they think I have underpaid!

I've searched extensively online, but, strangely, there is only one reference anywhere to the above.

Thanks for your advice.

Bizman
Posts:34
Joined:Sat Oct 21, 2017 9:18 pm

Re: Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Postby Bizman » Mon Jan 10, 2022 12:30 am

I don't seem to be able to edit the above post.

I made I mistake: what I meant in the following was January and July 2021: "The sum HMRC are asking me to pay on the final screen does not deduct the two Payments on Account sums for 2020-21 I paid in advance, in January and July 2020."

Thank you once again.

robbob
Posts:3210
Joined:Wed Aug 06, 2008 4:01 pm

Re: Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Postby robbob » Mon Jan 10, 2022 9:48 am

I have done my online self-assessment for tax year 2020-21. The sum HMRC are asking me to pay on the final screen does not deduct the two Payments on Account sums for 2020-21 I paid in advance, in January and July 2020.
I would have thought that in this day and age HMRC's calculation of the sum due would have deducted Payments on Account amounts paid?
That would be too easy - in some respects factoring in payments on account into the tax computation of the tax for the year could perhaps confuse some more than help - note there are two payments on accounts totals - what you should have paid and what you did pay - so always room for confusion . Simply check the "view acount" section and this will detail the payments on account , once return is processed everything should beupdated so you can check the overall current position. Note those payments on account may change downover when return is submitted if tax due on account is lower than your year tax suggests should be the case.
Therefore, do I need to manually calculate the amount I have to pay HMRC for 2020-21 (and the next Payment on Account) after deducting the 2020-21 Payments on Account amounts already paid?
As above simply view payments made on acount from the viewacount/tax years scren to see whats been paid on account and manually adjust payments if needs be - dont forget to add in any payments on account due 31/1/2022 based on this submission

Things will be much clearer when return processed and all recalculations are done - you may want to take priontouts fo beforer and after though .
Do I need to notify HMRC somehow (how?) or will their calculators automatically calculate the Payments on Account amounts paid? I don't wish to suffer any issues because they think I have underpaid!
Nope its par for the course payments on account dont show up in "tax comp" however they are always there and up to date when you navigate around the liabilities due section - there will be a summary overview once return is processed and that should fully match what you have manually calculated.

No need to notify hmrc - generally the system is robust in getting correct totals and overall summary (certainly with regard to not mising payments on acount) - the tricky bit can be working out where stuff is allocated if numbers are updated and replace differenet previous sums - if you goi back into calcs you should be able to follow it all through in theory. HMRc arent perfect though so if it doesnt make sense when the mop flops alwasy ask questions.

Bizman
Posts:34
Joined:Sat Oct 21, 2017 9:18 pm

Re: Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Postby Bizman » Mon Jan 10, 2022 2:39 pm

Thank you robbob! Your feedback is hugely appreciated.

I will deducted both (January and July 2021) last year's Payments on Accounts which I made from the sum I'm told is due this January.

It would be very straightforward for HMRC to include the Payments on Accounts sums when detailing how much you need to pay. That happens with every other type of bill we all have to pay, which include previous debits and credits when telling you how much you need to pay. But, of course, being a government department their aim is generally to make matters as complicated and time-consuming as possible for their 'customers'.

robbob
Posts:3210
Joined:Wed Aug 06, 2008 4:01 pm

Re: Payments on Account sum paid - not deducted from latest due self-assessment amount?!

Postby robbob » Mon Jan 10, 2022 6:17 pm

It would be very straightforward for HMRC to include the Payments on Accounts sums when detailing how much you need to pay. That happens with every other type of bill we all have to pay, which include previous debits and credits when telling you how much you need to pay. But, of course, being a government department their aim is generally to make matters as complicated and time-consuming as possible for their 'customers'.

The view account - tax years section is updated when the tax return is processed - so i would highly recomemnd always filing with sufficient time to give hmrc to process returns so you can then view the exact liabilities that are o/s that "statement/summary" shoudl be reasonably crystal clear - if you file near the deadline and there are issues at hmrc's end proecssing it doesnt give much time for that to be sorted or loked at unfortunately.

Unfortunately the "self" in self assesment is you and not them thats for sure :)


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