Confusing....help! Doing tax return for Mam!

SiBlood_2

Hi, I have completed a self assessment online for my mother for the past 4-5 years now. She is 64 and everything should be fine next year as the tax allowance goes up.

I am confused by the way the payments work however. From the state of things I thought I had already paid for the 2007-08 tax year as payments were made in January 08 and January 09. However after filling in the new tax return online, it says there is a balancing payment and that the first payment is for £900. £600 + £300 first payment and the second payment is for £300. I am confused by how this works?!?

Can anyone help?

Kind regards

Simon.

Mikeyorks

SiBlood wrote: »

From the state of things I thought I had already paid for the 2007-08 tax year as payments were made in January 08 and January 09.

You possibly have (provided you mean Jan 08 and July 08)?

But the online filing system is offline to the SA accounting system. Therefore (and it should tell you) the payments on account you may have made (31st Jan and 31st July 08) are not reflected until (at least) overnight when the online system drags the payment data back from the accounting system.

But as the payment is due by tomorrow 'tis a little late to wait for that? So you'll need to work it out yourself. And pay any residue of the £600 plus the £300 POA if she is not 65 prior 5.4.09 - when the enhanced allowance possibly covers the tax due 08-09? If she does get the extra allowance in 08-09 and if that does negate her liability altogether - you still need to reduce the £300 POA to £zero by completing SA303 (online or over the 'phone). But you don't have to do that by tomorrow - next week will do.

Use BillPay (link off the online) to make any payment .... as HMRC can't accept payments via FP .... it's about all that will get there in time. Needs a Debit Card ... doesn't need any registration.