SA - Do they owe me money this year?!

banzy

This is the first time I'm doing my own online tax return this year having used an accountant in the past. I was a sole trader and ceased trading in March '08 and took off for Paris (I let HMRC know).
I filled in my tax return correctly and got the following:

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Total tax, Class 4 NIC and Student loan due for 2007-08 £3,096.80

Plus First payment on account for 2008-09 £1,548.40
Payment due by 31 January 2009

This amount does not take into account any 2007-08 payments on account you may have already made £4,645.20

Second payment on account for 2008-09 will be due by 31 July 2009 £1,548.40

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I'm a bit confused by it all. I know I overpaid some tax the previous year ('06/'07) and also made quite a bit more profit that year, but from the above it would seem they would owe me?! If that were so, would they still ask for the payment of £1,548.40 to be made in Jan and again in July, and then pay back the excess payment later in the year?
I know for certain I paid 2750 pounds forward for the '07/'08 tax year, so had thought I was due to pay between 3-400 pounds only.

mrsmyagi

From those numbers it would look like they owe you a refund as you've overpaid 2007/08. Plus if you've ceased trading then you don't need to make the payments for 2008/09.

jennifernil

banzy wrote: »

This is the first time I'm doing my own online tax return this year having used an accountant in the past. I was a sole trader and ceased trading in March '08 and took off for Paris (I let HMRC know).
I filled in my tax return correctly and got the following:

---

Total tax, Class 4 NIC and Student loan due for 2007-08 £3,096.80

Plus First payment on account for 2008-09 £1,548.40
Payment due by 31 January 2009

This amount does not take into account any 2007-08 payments on account you may have already made £4,645.20

Is it just a coincidence that the £3096.80 and the £1548.40 add up to £4645.20?

I think it usually takes about 48 hours till they apply the "payments on account" you already made for 07/08

If you earned nothing in 08/09 then you will not have to make the "payment on account" they are asking for. Are you sure they do realise you have stopped trading? Another letter or a phone call seems in order.

Mikeyorks

As inferred in the previous post - any POAs you have made are not immediately reflected when you file the Return (as the online system takes at least overnight to drag the figures back from the accounting system).

So this :-

This amount does not take into account any 2007-08 payments on account you may have already made £4,645.20

.... is a misquote as the £4645.20 is the total sum due (07-08 + POA1 for 08-09)?

It would appear ("I was a sole trader and ceased trading in March '08") you owe the £3096.80 for 07-08. But less the £2750 you claim to have paid as POAs (despite you were 'in Paris' when £1375 of that became due 31st July 2008??).

If you're sure of your payments then you would appear to owe £346.80 on 31st Jan? But ..... you need to quash the POAs for 08-09 by completing an SA303 (application to reduce payments on account) or ringing your HMRC office

banzy

I thank you for all your replies. I did notify them in writing and by phone that I had ceased trading in March '08 back in March, so will owe them nothing for the '08/'09 tax year. I also phoned them to confirm they had received confirmation that I had ceased trading and of my new address overseas.

On the online returns form, I selected the box and entered the date for when my business ceased, so I'm not sure why they're asking me to pay ahead for the following tax year too. I guess I will have to call them to try and resolve it.

banzy

Also, I do not have time to get an SA303 form to them, unless it can be done online, or they will recalculate the July payment again? At the moment it looks as if I will be overpaying my tax due. If this happens, will it all shake out in the wash, and that they will eventually get around to paying back anything owed without my having to chase it up?

Mikeyorks

You should be able to reduce the POAs to £zero from your online account. Otherwise ring them and get it done that way.

Just pay the Balancing payment (£3096.80 .... less the POAs you made last year) by 31/1 ....... and let the £1548.40 resolve itself with the SA303 / cessation date.